EU chief warns against German-led push to slash bloc’s next budget

EU chief Ursula von der Leyen cautioned against Germany-led efforts to significantly reduce the bloc's upcoming budget during a European Parliament address. The German government, along with Austria, Denmark, Finland, the Netherlands, and Sweden, aim to slash the EU budget for 2028-2034 by hundreds of billions of euros compared to the European Commission's draft proposal.

Von der Leyen acknowledged the financial struggles of member states but urged against major cuts, warning that they could jeopardize crucial shared priorities. The EU Commission had proposed a €2 trillion budget for 2028-2034, representing a 60% increase over the current budget, with the aim of funding new areas such as competitiveness, innovation, and defence.

Meanwhile, 17 southern and eastern European countries have banded together as the "Friends of Cohesion" to advocate for a larger budget to support farmers and address social and regional disparities. To finance these new priorities, the Commission has proposed boosting the EU's own resources through environmental taxes and tobacco levies, urging parliament to back these measures.

The budget negotiations and discussions on new revenue sources will be a key focus at an EU heads of state and government summit in Brussels on October 15-16.