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Merz Rejects EU Borrowing, Calls for Defence-Focused Budget

5/15/2026

Summary

Story summary

The European Parliament voted in April to raise the EU’s 2028-2034 budget beyond Commission proposal, prompting a clash with member states.
German Chancellor Friedrich Merz called for a streamlined EU budget that prioritises defence and competitiveness, said Germany cannot finance EU spending with new debt, and rejected borrowing and levies.
He noted that two-thirds of EU budget fund subsidies while some states spend more on debt service than on defence.

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Story summary

The European Parliament voted in April to raise the EU’s 2028-2034 budget beyond Commission proposal, prompting a clash with member states.
German Chancellor Friedrich Merz called for a streamlined EU budget that prioritises defence and competitiveness, said Germany cannot finance EU spending with new debt, and rejected borrowing and levies.
He noted that two-thirds of EU budget fund subsidies while some states spend more on debt service than on defence.