Archive · 10 Oct 2026
Germany and France Clash Over EU’s Next Seven-Year Budget
The European Union is trying to agree on how much money it should spend from 2028 to 2034.
The plan from the European Commission is nearly €2 trillion, much larger than the current budget.
Germany and five other countries want the plan cut by hundreds of billions.
France says Europe needs enough money for things like defence, farmers and businesses.
Seventeen other countries want more support for poorer regions and agriculture.
Ireland is preparing a new proposal to help the countries find common ground.
EU leaders are due to discuss the issue in Brussels next week.
They hope to reach a deal by Christmas, but that may not happen.
The legal deadline for agreeing the budget is the end of 2027.
The European Commission proposed a 2028–2034 EU budget worth nearly €2 trillion, compared with about €1.2 trillion for 2021–2027.
Germany, Austria, Denmark, Finland, the Netherlands and Sweden want cuts of several hundred billion euros.
France argues the EU needs a stronger budget to meet shared challenges, including defence and support for farmers and businesses.
Seventeen countries in the Friends of Cohesion group seek more funding for agriculture and regional development.
Ireland plans to present a revised proposal ahead of EU leaders’ Brussels meeting, as the bloc’s hoped-for Christmas agreement appears at risk.
- Who
- EU member states, particularly Germany and France; Ireland is preparing a revised proposal.
- What
- Negotiations over the EU’s 2028–2034 budget, proposed at nearly €2 trillion.
- When
- Ireland’s revised proposal is due Saturday, with EU leaders meeting next week; the bloc hopes for a deal by Christmas.
- Where
- European Union; leaders are due to meet in Brussels.
- Why
- Member states disagree over the budget’s size, spending priorities and potential new revenue sources.
Budget cutters
Advocates for a stronger budget
Overall budget size
Budget cutters
Germany and five other countries want cuts of several hundred billion euros, arguing the proposed increase comes as governments face fiscal consolidation.
Advocates for a stronger budget
France says the EU needs an ambitious budget to respond to its challenges and support priorities such as defence.
Spending priorities
Budget cutters
The frugal countries oppose a high overall budget and want to retain their rebates.
Advocates for a stronger budget
France and the Friends of Cohesion group argue for resources for priorities including farmers, regional development and economic competitiveness.
New revenue sources
Budget cutters
Many countries dislike the proposed tax on large companies, and some oppose a digital levy.
Advocates for a stronger budget
The European Commission proposes new revenue sources rather than relying on larger contributions from member states; the European Parliament also backs taxes on digital giants and online gambling.
- Proposed budget period
- 2028–2034
- Proposed budget size
- Nearly €2 trillion
- Previous budget
- About €1.2 trillion for 2021–2027
- Countries seeking major cuts
- Germany, Austria, Denmark, Finland, the Netherlands and Sweden
- Cohesion group
- Seventeen countries seeking greater support for agriculture and regional development
- Planned EU revenue ideas
- A levy on large companies, a levy on electronic waste and higher tobacco taxes
- Final legal deadline
- End of 2027