German Chancellor confirms agreement with five countries to call for a reduction in the European Union budget

Berlin, August 27 (KUNA) – German Chancellor Friedrich Merz said on Thursday that his country has agreed with the Netherlands, Denmark, Austria, Finland, and Sweden to adopt a common stance calling for a reduction in the European Union’s long-term budget proposal covering the period from 2028 to 2034.

Speaking at a joint press conference with the heads of state and government of the five countries, Merz stated that the European Commission’s proposal should be cut by hundreds of billions of euros, adding that the reductions should apply across all areas. He clarified that these nations, also known as the “frugal four” (plus Sweden), represent a group of the EU’s largest budget contributors, collectively providing around 40 percent of the EU budget financing.

According to the German Chancellor, the European Commission’s proposals do not align with current conditions, and any increase in the budget size must be pursued with moderation and realism.

Regarding the deadline for member states to reach an agreement on the budget by the end of this year, Merz said that meeting this target is not essential, but reaching an agreement beforehand would be desirable.

In a joint statement, the group outlined that its current priority is to invest in security and defense, enhance competitiveness, and address migration. The six countries also rejected the idea of joint borrowing, which would effectively lead to the mutualization of debt, to finance the budget or issue common debt.

The European Commission has proposed a budget of approximately 1.7 trillion euros ($1.98 trillion) for the aforementioned period, to be invested in various sectors, notably defense, agriculture, and development.

Germany is the largest contributor to the EU budget due to the size of its gross domestic product, while together with the other five countries, it accounts for nearly 40 percent of the budget. (End) A.N.J./M.A.A.