Germany is demanding that the EU’s next seven-year budget be trimmed by €400 billion, warning that an agreement on the proposed €2 trillion spending plan is “impossible” in its current form.

Berlin has long pushed for deeper cuts to the European Commission’s proposal for 2028-2034, alongside a group of fiscally frugal countries including Sweden, Austria and the Netherlands.

After a recent EU summit, Friedrich Merz, the German chancellor, said the budget plans would mean Germany would pay “at least €15 billion, more likely €20 billion” more per year, calling the current figures “unaffordable and unbalanced”.

Germany is the biggest contributor to the multi-annual spending plan, which has to be agreed on by all 27 EU countries.

In June, the Cypriot presidency proposed an overall 2% cut, which was criticised by net contributors, including Germany.

Berlin has demanded more balanced cuts, particularly to traditional funding such as cohesion and agriculture, which have largely been left untouched by Cyprus.

The balance between the main programming pillars was “just as unresolved as the question of how the EU should actually finance its revenues,” Merz said.

He also urged capitals to close a deal by the end of the year to ensure planning certainty before the budget kicks in at the beginning of 2028.

Ireland, which will take over the six-month rotating presidency of the Council of the EU on Wednesday, is tasked with preparing a revised ‘nego box’ by the time EU leaders meet in mid-October.

It will also steer the stalled talks about EU-wide revenues, so-called ‘own resources’, which should help fund the budget.

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