Several of the EU’s wealthiest member states are gathering to coordinate their negotiating position on the bloc’s next long-term budget, as talks over a significantly expanded spending plan begin to intensify.
The meeting — led by Austria and Sweden and including Germany, France, the Netherlands and other major net contributors — comes as the European Commission pushes for a substantial increase in the EU’s joint budget for the 2028–2034 cycle.
Commission Proposes a Much Larger Budget
In July, the Commission unveiled a proposal to raise the EU’s seven-year budget to €2tn, up from the current €1.2tn. The plan aims to give member states more flexibility and sharply increase investment in defence capabilities, climate transition, and industrial competitiveness.
Because all 27 member states must agree unanimously, early opposition from net contributors has prompted Brussels to begin adjusting elements of its plan to avoid an early backlash in the European Parliament.
Net Contributors Push for Restraint
At today’s breakfast meeting, Austria’s Europe minister Claudia Plakolm and Sweden’s Europe minister Jessica Rosencrantz are seeking to align the group’s priorities before formal talks with all EU general affairs ministers.
Both ministers signaled they will push for a smaller, more disciplined budget.
“We must not spend more — we must spend better,” Plakolm said, warning that governments already tightening their belts domestically cannot justify endorsing the EU’s largest budget in history.
Rosencrantz echoed those concerns:
“The focus of the proposal is good, but the volume is too high. The budget needs to be put on a diet.”
She said spending should prioritize three areas:
- Supporting Europe as war returns to the continent
- Accelerating the green transition
- Boosting global competitiveness
Italy, also a net contributor but supportive of a larger EU budget, did not attend the meeting.
One EU diplomat said the gathering was aimed at ensuring contributors act together: “Every member state has its own position. This meeting is about finding a joint line. We believe there is a lot of common ground.”
Germany Faces a Growing Pension Revolt
Meanwhile in Berlin, Chancellor Friedrich Merz is confronting a rebellion within his own conservative bloc over the government’s pension package — a conflict that threatens the cohesion of his coalition.
Eighteen younger MPs from the CDU/CSU group have warned that they may vote against the bill, claiming it unfairly burdens younger generations. Their votes are enough to overturn the coalition’s slim 12-seat majority.
The dispute centers on the guarantee to maintain pensions at 48% of previous income until 2031. Younger lawmakers fear it will be politically extended beyond that date at an annual cost of €10–15bn.
Merz attempted to reassure the critics during a speech at the Young Union congress, promising a broader pension overhaul next year. He later floated adding clarifying language to the bill, but the Social Democrats — a coalition partner — have rejected changing the text.
The deadlock threatens parts of the pension package that conservatives support, including measures to:
- Encourage older workers to remain employed
- Expand private pension options
- Increase benefits for older mothers
If the bill collapses, analysts say it could endanger future reforms that are even more politically sensitive — and deepen doubts about whether the coalition can survive a full term.
What’s Happening Today in Brussels
- Meeting of EU general affairs ministers
- Meeting of EU agriculture and fisheries ministers
- EU-Albania accession conference
Other Key Developments
- Ukraine–Greece Gas Deal: Kyiv has signed an agreement to import gas from Greece to help secure winter supplies amid Russian attacks on energy infrastructure.
- India–EU Trade Tensions: The EU is preparing to reject India’s request for an exemption from the bloc’s carbon border tariff, adding pressure to ongoing trade negotiations.
- Stablecoin Risks: A top ECB policymaker warned that a run on stablecoins could destabilize the Eurozone and force the ECB to rethink its interest-rate strategy.
