The key facts
- Germany demands cutting the next EU long-term budget by at least several hundred billion euros; the Irish presidency has already trimmed the proposal by ~€140 billion.
- Berlin rejects new joint borrowing and an EU tax on companies, but allows discussion of new 'own resources'.
- Germany proposes reducing the share of agriculture and cohesion policy from ~66% to 50% of the budget, with priority on competitiveness, defence and Ukraine.
Berlin's tough stance on the EU budget
Germany's Permanent Representative to the EU, Thomas Ossowski, told Euronews that the European Commission's proposal for the next long-term budget 'was too high,' and Berlin demands a cut of 'at least several hundred billion euros.' According to him, despite last week's summit, member states are still far from a deal: 'We are not there yet. Even more cuts will definitely be necessary.' The Irish presidency of the Council of the EU has already reduced the proposal by roughly €140 billion in its latest negotiating document, but in Berlin's view this is not enough.
Rejection of joint borrowing and EU-level taxes
Asked whether Berlin would agree to a new round of EU joint borrowing if countries refuse to increase contributions, Ossowski answered unequivocally: 'No, definitely no new joint borrowing.' Germany believes further joint debt would undermine national sovereignty. Berlin is ready to discuss new EU 'own resources,' but rejects the idea of an EU-level tax on European companies.
Spending priorities
Ossowski said spending should prioritise competitiveness, innovation, research, defence, security and Ukraine. Funding for agriculture and cohesion policy will remain, but Germany advocates reducing their combined share of the budget from roughly 66% today to 50%: 'We believe this is a sustainable approach.' He expressed hope of concluding a budget deal 'before Christmas' and called this 'an ambitious plan.' The next key step is a new negotiating draft from European Council President António Costa ahead of the informal EU summit at the end of November.
Ukraine and diplomacy
Ossowski rejected the suggestion that additional support for Kyiv would necessarily come at the expense of farmers, families or cohesion funds: the already agreed €90 billion in loans for Ukraine, he said, are financed outside the regular EU budget using the existing 'headroom.' At the same time, he noted, further support will be needed for Ukraine to get through the winter and the next year, and Berlin expects contributions from the G7 and other international partners. Support for Ukraine, he stressed, is 'outside' Germany's contribution to the EU budget. Ossowski was sceptical about the latest US-led diplomatic initiative: 'We see no readiness on Russia's part for any negotiations,' pointing to the ongoing strikes on Ukrainian cities and civilians. Until this changes, European support for Kyiv will continue. He called the EU 'now the actor defending the rules-based international order.'
