Germany Rejects EU €2 Trillion Budget Proposal

The European Commission, led by Ursula von der Leyen, proposed an ambitious nearly €2 trillion budget for 2028-2034 aimed at boosting Europe's security, competitiveness, and supporting Ukraine's reconstruction. However, Germany, the EU's largest economy, promptly rejected the proposal, deeming the comprehensive budget increase unacceptable amid efforts by member states to stabilize their national finances. The plan includes significant funding for defense, space, and a five-fold increase in related competitiveness spending, alongside reforms to agriculture subsidies and tax measures on large companies. German officials also opposed the tax proposals and expressed concerns about the overall budget size, sparking a divide within the EU as other lawmakers criticized the budget for insufficient allocations to climate adaptation and agriculture. The negotiation process is expected to continue for about two years, with a resolution anticipated by summer 2027. This budget debate highlights ongoing tensions within the EU over fiscal priorities and balancing economic consolidation with strategic investments.