Six EU net contributors demand hundreds of billions in cuts to proposed two-trillion-euro budget

Berlin summit forms contributor bloc

German Chancellor Friedrich Merz hosted government leaders in Berlin on 27 August 2026 to coordinate opposition against the European Commission's proposed long-term budget. Danish Prime Minister Mette Frederiksen, Finnish Prime Minister Petteri Orpo, and Austrian Chancellor Christian Stocker attended talks at the Federal Chancellery in person, while the prime ministers of the Netherlands and Sweden participated via video link. The six nations, traditionally known as the net contributors or frugal states, agreed on a joint declaration demanding reductions of several hundred billion euros to the draft Multiannual Financial Framework. The European Commission has proposed a budget volume of nearly 2 trillion euros (around 1.76 trillion euros in 2025 prices) for the seven-year period spanning 2028 to 2034. Friedrich Merz described the proposed expansion of up to 60% as unsustainable while national governments carry out domestic spending curbs. Merz outlined the position of the net contributor group during a press conference following the talks.

In times of fiscal consolidation in all member states, that is simply unaffordable.

The Berlin declaration broadens earlier German calls from June 2026, when Berlin sought a reduction of approximately 400 billion euros from the planned spending ceiling.

Financial weight and spending demands

Together, the six net contributor states account for roughly 40% of the European Union budget, with Germany alone contributing about 25%. In addition to their direct contributions, the six countries provide approximately 70% of all bilateral aid supplied to Ukraine by European Union members. The group called for budget cuts across all spending categories while asking the European Union to refocus resources on defence, competitiveness, migration, and sovereignty. The alliance also rejected any new joint European borrowing mechanisms, stating that joint debt cannot replace structural reforms or resolve national budgetary burdens. Furthermore, the leaders demanded strict rule-of-law conditions for any disbursements and insisted that European Union institutions operate within existing personnel limits.

Differing priorities across member capitals

The demands from Berlin set up a confrontation with southern and eastern member states, including Italy, Spain, and Poland, which advocate for an expanded financial framework. Austrian Chancellor Christian Stocker warned that Brussels must exercise the same financial discipline that member governments apply to their domestic budgets.

It is not about less Europe for us, but about dealing purposefully with every euro. A strong budget is not automatically the largest budget.

Danish Prime Minister Mette Frederiksen emphasized that European funding must prioritize security and border control in response to geopolitical pressures from Russia.

The EU budget must prioritise European defence and security, continue to provide strong support for Ukraine and support protecting our external borders.

Frederiksen cited hybrid attacks across Europe as a direct reason to allocate capital toward weapons, ammunition, and external border infrastructure. More than 15 member states favor maintaining larger cohesion and regional development funds rather than accepting broad cuts.

Path to the 2028 budget framework

European Council President António Costa is currently touring European capitals to sound out member states ahead of formal negotiations. The Multiannual Financial Framework requires unanimous approval from all 27 member states to enter into force on 1 January 2028. Costa has targeted the end of 2026 for a final compromise, seeking a resolution before the French presidential election campaign begins. Merz acknowledged that reaching unanimous agreement by December 2026 is ambitious, though he affirmed that the coalition will present a united front during the European Union summit in October.

Detailed technical negotiations among national finance delegations and European Union representatives will intensify in Brussels during autumn 2026.