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

EU Commission President Ursula von der Leyen cautioned against a proposed cut to the European Union's upcoming budget by Germany and other member states. Speaking at the European Parliament, von der Leyen emphasized the importance of critical European priorities, which could be jeopardized by significant budget reductions. Germany and five other countries known as the "frugal" nations - Austria, Denmark, Finland, the Netherlands, and Sweden - are advocating for a budget cut of several hundred billion euros compared to the European Commission's draft.

In response to this push for budget cuts, von der Leyen urged lawmakers not to support large reductions, stating that such actions could harm essential priorities that have been agreed upon collectively. The current budget proposal, approved last year, totals €2 trillion for the period between 2028 and 2034, representing a 60% increase from the existing budget.

The budget, formally known as the Multiannual Financial Framework (MFF), is designed to finance the EU's new priorities in areas such as competitiveness, innovation, and defence. Von der Leyen expressed her belief that the priorities outlined in the MFF are appropriate and should be pursued. In contrast, 17 countries from southern and eastern Europe have formed an alliance known as the "Friends of Cohesion" to advocate for a more ambitious budget that would support farmers and address social and regional disparities.

To finance its new priorities, the Commission has proposed increasing the EU's own resources, including potential environmental taxation and levies on tobacco. Von der Leyen appealed to the European Parliament to support these revenue-increasing measures. Negotiations surrounding the budget and proposals for new revenue sources will be prominent topics at a summit of EU heads of state and government scheduled for October 15 and 16 in Brussels.