German Chancellor Friedrich Merz has warned that negotiations on the European Union's next Multiannual Financial Framework will be "extremely difficult," after his government rejected the European Commission's initial proposals.

“Starting next year, we will be facing extremely difficult negotiations,” Merz stated at a press conference in Berlin in response to a question related to the Commission’s draft financial framework for the 2028–2034 period.

The European Commission has presented a long-term budget plan worth €2 trillion ($2.3 trillion), aimed at enhancing the bloc’s competitiveness and defense capabilities.

“Germany already finances about a quarter of the EU budget, so our capacity to contribute even more is very limited,” Merz emphasized.

He also rejected the idea of granting the European Union new borrowing powers, following the model of joint financing used during the COVID-19 pandemic—a proposal supported by some member states.

“The joint debt mechanism was an exception and must not become the rule,” the German Chancellor asserted.

His spokesperson, Stefan Cornelius, also reacted sharply to the European Commission’s proposals, saying they are “unacceptable at a time when all member states are making significant efforts to consolidate their national budgets.”

Germany also voiced opposition to the idea of new business taxes proposed by Brussels, which would go directly into the EU budget. | BGNES