Key facts
- Macron and Merz hold key positions to break the EU budget deadlock.
- France and Germany are divided on budget size, with Germany advocating for smaller budgets and France resisting cuts.
- Macron faces pressure from presidential candidates ahead of next year's election.
- Merz faces domestic pressure following election defeats and prefers no deal over an increased budget.
- France wants to stabilize national contributions to the EU budget.
- Germany is open to examining new "own resources" but is skeptical of their revenue potential.
BRUSSELS — Political pressures are hindering French President Emmanuel Macron and German Chancellor Friedrich Merz from breaking the deadlock over the European Union's next seven-year budget. As EU leaders convene for a summit, the heads of the bloc's two largest economies hold significant influence, but domestic challenges limit their flexibility. A Germany-led group advocates for a smaller budget, while France and others resist reductions. Siegfried Mureșan of the European Parliament highlighted the need for compromise and faster adoption of the budget to enhance competitiveness and security. The €2 trillion budget is a major challenge for leaders, requiring unanimous agreement. However, with Macron soon to leave office and Merz facing domestic political weakness, hopes for a breakthrough this week are low. Officials suggest that a unified stance from Macron and Merz could be pivotal, but formal discussions were not firmly planned. Both leaders are wary of making concessions that could be exploited by political rivals.