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Germany-Led EU Demand €400B Cuts to €2T Budget

8/29/2026

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Summary

Story summary

Germany and five EU members demand cuts to the EU’s €2 trillion 2028-2034 budget.
They seek reductions of several hundred billion euros, about €400 billion according to German officials.
The cuts must spare defense and security, Ukraine aid and protection of the EU’s external borders.
European Council President António Costa is touring capitals to secure a deal before the December deadline and French election.

History

Historical Context

In 2009 the eurozone fell into recession, leading the EU to adopt the Lisbon Treaty (effective 1 December 2009) and manage a €1.08 trillion 2014-2020 multiannual budget. The crisis created an austerity precedent that now drives Germany and five other members to press Council President António Costa to cut the €2 trillion 2028-2034 budget by about €400 billion, endangering cohesion-fund allocations.

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Story summary

Germany and five EU members demand cuts to the EU’s €2 trillion 2028-2034 budget.
They seek reductions of several hundred billion euros, about €400 billion according to German officials.
The cuts must spare defense and security, Ukraine aid and protection of the EU’s external borders.
European Council President António Costa is touring capitals to secure a deal before the December deadline and French election.

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