Germany Faces 80% EU Budget Hike as Costs Soar, Belgium Warns
Germany faces an 80 percent increase in EU budget contributions under Brussels' proposed 2028-2034 spending plan, which its ambassador called unaffordable amid existing defense commitments.
Thomas Ossowski, Germany’s Permanent Representative to the EU, issued a stark warning following a Council of the European Union meeting in Brussels on Tuesday. He described the potential growth in German contributions as immense and declared the proposed increase simply not affordable for Berlin.
Commission President Ursula von der Leyen is seeking approval for a Multiannual Financial Framework exceeding €2 trillion for the seven-year period from 2028 to 2034. The figure represents a record demand and marks a substantial expansion from the current MFF, which covers 2021 to 2027 with a total of approximately €1.2 trillion, or roughly €2 trillion when the €800 billion NextGenerationEU pandemic recovery instrument is included.
The proposed budget would fund priorities including competitiveness initiatives, defence spending, cohesion policy and continued support for Ukraine. National governments across the bloc are now bracing for what many view as an unsustainable financial burden.
Net Contributors Push Back
Germany remains the EU’s largest net contributor by a considerable margin, providing between €19 billion and €25 billion more than it receives annually in recent years, according to Commission data. Domestic budgetary pressures are mounting in Berlin, where Chancellor Friedrich Merz‘s coalition government has already committed more than €100 billion in additional defence spending over the coming years.
According to reporting from The Pioneer cited by Brussels Signal, representatives from what were described as equal-minded states convened ahead of the Council meeting to coordinate opposition to increased contributions. The group reportedly included Finland, Denmark, the Netherlands, Austria, Ireland, Belgium and France as an observer, alongside German Ambassador Ossowski.
Belgian Prime Minister Bart De Wever also voiced alarm at the Commission’s demands. He described the prospective EU invoice as quite dizzying and warned that Belgium’s annual contribution could rise by up to €2.5 billion on top of its current €4 billion to €4.5 billion per year.
Belgium is currently grappling with a debt-to-GDP ratio exceeding 105 per cent, among the highest in the eurozone, and a deficit that has already triggered an excessive deficit procedure from Brussels itself. De Wever stressed that formal negotiations are only beginning and voiced opposition to specific proposals, including raising the EU’s share of customs revenues.
Berlin Left With Little Room to Manoeuvre
Germany has repeatedly emphasised the need for spending restraint, prioritisation and efficiency in the next MFF. Berlin faces constraints from defence increases, debt servicing and broader economic challenges, leaving scant capacity for higher transfers to Brussels.
De Wever also noted the scale of the demand on Germany specifically, stating that the Commission is asking Berlin for an extra contribution equivalent to the full contribution of France. He added that Germany is not prepared to accept such terms.
Dividing Lines Emerge
Part of the Commission’s elevated funding request stems from the repayment of joint pandemic-era debt under the NextGenerationEU borrowing programme. Reimbursements are due to begin in 2028, placing additional weight on the next budget cycle.
Brussels is also seeking to generate more revenue through new European taxes, including green levies and a new tax on tobacco products, as Brussels Signal reports.
Opposition to the proposed budget is not universal. According to Euractiv, 16 countries have launched an initiative to expand the Union’s next long-term budget and persuade the EU to approve new joint debt. This group includes Poland, Italy, Spain and Portugal, all of which are seeking increased funding for agriculture, infrastructure and cohesion policy.
The European Commission aims to secure agreement on the new multiannual budget by the end of the year. The divide between net contributor and net recipient states suggests prolonged and contentious negotiations lie ahead.
With information from Brussels Signal
