German chancellor says EU leaders remain divided on next budget

German Chancellor Friedrich Merz said Friday that European Union leaders remain deeply divided over the bloc’s next seven-year budget, with a smaller group that includes Germany pushing for significant cuts to the European Commission’s proposals.

Speaking on the second day of an EU leaders’ meeting in Brussels, Merz said the 27 member states hold very different positions on the spending plan that would run from 2028 onward. He expressed hope that an agreement could still be reached by the end of the year but cautioned that success was far from certain.

“There are very different positions among the individual member states,” Merz said. “A smaller group -- which includes Germany -- believes that we must significantly reduce the European budget compared to the proposals put forward by the European Commission.”

A larger group of countries, by contrast, wants the budget expanded, he added.

From Germany’s perspective, the Commission’s figures must be brought down further, Merz stressed. All member states face fiscal tightening efforts at home, he noted, and a sharp rise in EU spending is not realistic.

“It is simply not tenable for the European budget to increase by around 50%, that is not financially feasible. And given the national contributions involved, it is something no one can afford,” he warned.

Leaders will need to discuss the issues in detail, Merz said. An additional European Council meeting is likely in November, followed by multi-day talks in December.

“I remain hopeful that we will succeed in getting the European budget for the years from 2028 onwards on track through a unanimous Council decision,” Merz said. “Whether we will succeed, I cannot say at all today; there are still too many conflicting views,” he added.