German Chancellor Friedrich Merz has urged a new, smaller proposal for the European Union's next long-term budget for the period from 2028 until 2034.
"The proposal on the table is far too high. The figures need to be reduced," Merz said on Friday in Brussels ahead of consultations with fellow EU leaders.
"A new proposal must be put forward," he said.
A recent compromise proposal foresees a 2% reduction in the European Commission’s proposed budget of €1.76 trillion ($2.02 trillion).
Leaders face the challenge of financing the EU’s ever-growing financial and investment needs while many capitals are constrained by tight budgets after years of successive crises.
Merz also insisted that the EU will not take on additional joint debt and that EU leaders debate the bloc's revenues.
Despite the issue being "highly controversial," Merz said he hopes the EU will agree on a new budget by the end of this year.
The joint budget for the 2028-34 period is expected to cover traditional expenses for agriculture subsidies and support for less affluent regions, but also emerging priorities, including increased investments in competitiveness and defence.
