Netherlands joins Germany in EU budget overhaul demands

Six EU governments led by Germany and the Netherlands have demanded a fundamental overhaul of the bloc’s proposed 2028-2034 budget, threatening to withhold support unless planned spending is cut by hundreds of billions of euros. A joint letter signed by German Chancellor Friedrich Merz, Dutch Prime Minister Rob Jetten and the leaders of Sweden, Denmark, Austria and Finland - together responsible for roughly 40% of member-state contributions - calls for shifting resources away from traditional agriculture subsidies and cohesion transfers for poorer regions toward defense and support for innovative industry to bolster competitiveness with the US and China.

That demand sets up a standoff with a larger coalition of 17 countries, including Spain and Italy, which want higher overall spending (above the proposed €2 trillion) and more money for farmers and less-developed regions, with some backing joint EU borrowing to pay for it. Reaching a deal requires unanimous approval from all 27 members, and Ireland, holding the rotating presidency, faces the task of brokering a compromise before an end‑of‑year deadline agreed by leaders and ahead of elections in several big states. EU officials say negotiators must close the gap to produce a balanced agreement by year‑end.