Berlin issues Brussels an ultimatum over the EU budget - Financial Times

Six European Union countries led by Germany have threatened Brussels that they will reject the draft of the new seven-year EU budget for 2028-2034 if spending is not cut by "hundreds of billions" of euros.

This was reported by the Financial Times (FT), citing a letter also signed by the leaders of the Netherlands, Sweden, Denmark, Austria, and Finland.

The EU budget, whose volume, according to the European Commission's proposal, could reach nearly €2 trillion, "needs fundamental reform," the appeal says. "If budget spending is not cut by hundreds of billions, there will be no agreement on it this year," said a diplomat from one of the countries that signed the letter. Approval of the budget requires the unanimous consent of all 27 member states.

In the view of the leaders of the six countries, resources should be redirected toward defense needs and support for innovative companies in order to respond adequately to growing economic challenges and security threats, while simultaneously reducing funding for agriculture and less developed regions, which traditionally account for about two-thirds of spending under the bloc's financial plan.

Such an ultimatum reflects disagreements over the new priorities for EU budget spending, concerning, in particular, defense expenditures and support for struggling industrial sectors amid competition with China and the United States, the publication says. The six countries account for about 40% of all of the bloc's budget revenues, which are formed primarily through contributions from member states.

Source: TASS