Germany urges EU to limit spending in next 7-year budget

Germany called for restraint in the European Union’s next seven-year budget, warning that member states lack the financial capacity to expand contributions, according to a policy paper seen by Reuters.

The document, sent to Brussels on Thursday, argues that the EU budget should not rise relative to gross national income (GNI), citing limited fiscal space across the bloc. The cautious stance comes as the German economy — the EU’s largest — has contracted for two consecutive years, with only modest growth expected in 2025.

Talks are just starting on the 2028–2034 EU budget, which is expected to total around €1.2 trillion. The German paper stresses the need to prioritise security, defence, competitiveness, and continued support for Ukraine.

Germany also reaffirmed its opposition to any extension of jointly issued EU debt, insisting that repayments for the pandemic-era Next Generation EU fund must begin in 2028, with no legal basis for prolongation.

Attribution: Reuters
Subediting: M. S. Salama