Germany, Austria, Denmark, the Netherlands, Finland and Sweden have said they will not support the European Union’s seven-year budget for 2028–2034 without substantial changes. The position was set out by the so-called “frugal” countries — net contributors to the EU budget.
The six states are demanding that the European Commission’s proposed spending package be cut by hundreds of billions of euros and that more money be redirected toward defence, competitiveness and innovation. The Commission’s proposal is estimated at nearly €2 trillion. The countries insist the budget should grow only at a moderate pace and that every spending heading must contribute to the cuts.
“To arrive at an acceptable landing zone, the Commission’s proposal of nearly 2 trillion euros needs to be reduced by several hundred billion euros in a balanced manner,” said a statement released by the German government in late August. Later, according to the Financial Times, the leaders of the six countries sent a letter warning that without such cuts there will be no agreement this year. Adoption of the multiannual financial framework requires unanimity among all 27 member states.
The six countries account for about 40 percent of contributions to the EU budget. Their leaders stress that at a time when member states themselves are undertaking painful fiscal consolidation, the EU budget cannot be an exception. They reject new joint borrowing, saying it is “not the solution to our budgetary challenges and is no alternative to structural reforms.” Priorities named include security and defence, competitiveness, migration and sovereignty. Traditional large items — agriculture and cohesion policy — should give way to these areas.
A group of about 17 countries, including Spain and Italy, opposes this approach. They want to protect or increase support for farmers and less developed regions and in some cases favour an even larger overall budget. Ireland’s Council presidency is preparing a compromise text for autumn talks, while European Council President António Costa is consulting capitals in an effort to seal a deal by the end of 2026.
Negotiations are entering a decisive phase. Without the consent of Germany and its partners, the EU’s next decade-long financial framework cannot be adopted.
