European Commission President Ursula von der Leyen proposed a €2 trillion budget to finance the bloc's independence, facing opposition from Germany and allies seeking significant cuts.
The size and allocation of the EU's next budget will determine its capacity to invest in strategic sectors and achieve greater economic and technological independence, potentially reshaping its global economic relationships and competitive standing.
European Commission President Ursula von der Leyen has called for the EU's next seven-year budget to be a financial tool for the bloc's independence, proposing a nearly €2 trillion spending plan. This initiative aims to reduce reliance on foreign powers, including China for critical raw materials and the U.S. for technology, as well as imported fossil fuels.
Von der Leyen emphasized that the budget would support strategic industries, energy, and artificial intelligence, sectors deemed essential for Europe's self-sufficiency. She stated that "Europe cannot set new ambitions without providing the means to finance them," referencing over €450 billion from proposed funds for competitiveness and research.
However, the proposal faces significant opposition from Germany and five other member states—Austria, Denmark, Finland, the Netherlands, and Sweden—who are advocating for cuts amounting to several hundred billion euros. German Chancellor Friedrich Merz argued that the proposed increase is unaffordable, especially during a period of budget consolidation across member states.
European Council President António Costa is currently engaged in discussions with national capitals to broker a compromise, with governments aiming to finalize the budget by the end of the year to avoid complications from upcoming national election campaigns.