Germany and five other EU countries are threatening to veto the bloc’s next seven-year budget unless it is substantially reduced and refocused on defense and economic competitiveness. Germany, Austria, Denmark, Finland, the Netherlands and Sweden want cuts worth several hundred billion euros to the proposed 2028–2034 budget, while directing more money toward areas including defense and technology. Their position puts them at odds with a larger group of member states seeking to protect funding for agriculture and regional development, two of the EU’s traditional spending priorities. The six countries account for roughly 40% of national contributions to the current EU budget. Ireland, which holds the rotating presidency of the Council of the EU, is preparing a compromise ahead of an October 15 European Council meeting. EU leaders aim to reach a final agreement by the end of 2026. The Commission’s proposal would significantly increase funding for defense, security and space, including €131 billion earmarked for those areas.
