FX.co ★ Friedrich Merz сalls for hundreds of billions in cuts to €2-trillion EU budget

Germany’s Chancellor Friedrich Merz said during an official visit to Dublin that the European Union’s new financial framework must rule out any significant increase in spending. In his view, the proposed multiannual EU budget of nearly €2 trillion is unacceptable and unbalanced and should be reduced across all headings by several hundred billion euros. Against the backdrop of large‑scale fiscal consolidation in member states, an expansion of EU‑level spending is out of the question.

Berlin is strongly opposed to expanding the administrative staff of EU institutions (including the creation of around 2,500 new jobs) and has urged efforts to be directed toward easing the regulatory burden. Friedrich Merz also advocated for giving countries flexibility in setting caps on agricultural subsidies to farms and voiced opposition to the introduction of additional corporate taxation at the EU level.