German Chancellor Friedrich Merc called for a new, smaller proposal for the next long-term budget of the European Union for the period from 2028 to 2034.
“The proposal on the table is too high. The figures should be reduced,” said Merc on Friday in Brussels on the sidelines of consultations with other EU leaders.
“A new proposal must be presented,” he said.
A recent compromise proposal calls for a 2% reduction in the European Commission’s proposed budget of 1.76 trillion euros ($2.02 trillion).
The EU faces the challenge of financing its ever-growing financial and investment needs, while many capitals are constrained by tight budgets after years of successive crises, writes dpa.
The upcoming joint budget is expected to cover traditional costs for agricultural subsidies and support for less wealthy regions, but also new priorities, including increased investment in competitiveness and defense.
EU funds are mainly filled with national contributions based on the economic power of individual member states and some customs duties.
Rich EU countries, including Germany, which contribute the largest part of the common budget, have called for a drastic reduction in its size.
Merc also insisted that the EU will not take on additional common debt and that EU leaders are discussing the bloc’s revenues, he reports B92.
The European Parliament has previously proposed taxes on digital services, online gambling and crypto-asset transactions, as well as an extension of the EU carbon tax at the border as additional sources of revenue for the EU.
