European leaders discuss EU budget cuts for 2028-2034

On August 27, German Chancellor Friedrich Merz hosted a meeting in Berlin with the leaders of Denmark, Austria, and Finland, while representatives from the Netherlands and Sweden joined virtually. The discussion centered on a coordinated effort to reduce the European Commission’s proposed two-trillion-euro budget for the 2028-2034 period.

Germany has formally proposed a reduction of approximately 400 billion euros to the initial budget draft. The coalition of six countries advocates for higher expenditure in areas such as defense, industrial competitiveness, and migration management. Furthermore, these nations are firm in their opposition to institutionalizing common EU debt as a permanent fiscal tool, as noted in an analysis by Petar Ganev of the Institute for Market Economics.

Simultaneously, European Council President Antonio Costa has initiated a diplomatic tour across EU member states to reconcile varying fiscal perspectives. He has already visited Slovakia, Estonia, Latvia, and Lithuania to gather national positions ahead of upcoming negotiations.