Germany, France Clash Over EU Long-Term Budget; Year-End Deal in Doubt

Germany and Five Other Countries: "Must Be Cut"... France Calls for Increase
2028-2034 Budget at 2 Trillion Euros, Up 60%

Germany and France are at odds over the European Union's (EU) next long-term budget, raising expectations that reaching an agreement by the end of the year will be difficult. Germany and five other countries argue that the budget should be cut to reduce the financial burden, while France says it should be increased to strengthen defense capabilities and secure economic competitiveness.

According to Agence France-Presse (AFP) on October 10 local time, the 2028-2034 long-term budget proposed by the European Commission is worth about 2 trillion euros (3,011 trillion won). That is roughly 60% more than the approximately 1.2 trillion euros allocated for 2021-2027.

European Commission President Ursula von der Leyen. Yonhap News Agency

Germany, together with Austria, Denmark, Finland, the Netherlands and Sweden, argues that the budget should be cut by hundreds of billions of euros. These countries are net contributors, paying more into the EU budget than they receive in funding. They say it would be difficult to sharply increase the EU budget when member states are reducing their own financial burdens. They stressed that funding should be focused on key areas, including defense and security, economic competitiveness and migration response.

France, by contrast, argues that substantial investment is needed for Europe to respond to security threats and boost its economic competitiveness. French President Emmanuel Macron said in September that a larger European budget was needed to support the EU's key priorities, including defense.

France, however, is also facing fiscal difficulties. Marine Le Pen, a leading presidential candidate for the far-right National Rally (RN), argues that France's contribution to the EU budget should be cut to reduce the national debt.

Funding for agriculture and regional development is also a point of contention. Seventeen countries in southern, central and eastern Europe have formed a separate coalition to call for increased funding in these areas. Disputes are growing not only over the size of the budget but also over how funding is allocated among member states.

The EU aims to reach an agreement by Christmas this year. Ireland, which holds the rotating presidency of the EU, is expected to present a revised budget proposal on October 10. Negotiations are also expected to continue at the EU summit in Brussels next week. However, with wide differences among member states, there are concerns that an agreement could be delayed until next year.

This content was produced with the assistance of AI translation services.