German Chancellor Rejects Additional Debt in EU Budget

German Chancellor Friedrich Merz on Friday criticised the proposed next seven-year budget of the European Union and reiterated his rejection of additional debt that he said exceeds the bloc’s financial capacity. “We have to discuss the size of this budget,” Merz told reporters on the sidelines of the EU leaders’ meeting in Brussels. According to him, the current budget proposal is clearly too high. “The proposal on the table right now is clearly too high. The figure must be lowered,” he said. Merz also rejected the idea of the EU taking on new common debt. “We can only spend the money we have,” he stressed. “Today at the European Council, I will once again make it clear that the EU must not take on new debt.” The EU’s next long-term budget, known as the Multiannual Financial Framework (MFF), will cover the period from 2028 to 2034. The framework will determine the bloc’s spending priorities across various sectors, including agriculture, regional development, industry, and security. As the EU’s largest economy, Germany is also the biggest net contributor to the bloc’s common budget, paying in more than it receives back.