EU budget: Germany hosts frugal leaders before talks

German Chancellor Friedrich Merz hosted leaders from Austria, Denmark and Finland in Berlin on Thursday as the European Union prepares for difficult talks on its 2028-34 budget.

Merz has called for the European Commission to cut its nearly two trillion euro, or $2.3 trillion, proposal by several hundred billion euros, describing it as unaffordable.

He met Austrian Chancellor Christian Stocker, Danish Prime Minister Mette Frederiksen and Finnish Prime Minister Petteri Orpo to work on a joint position. Austria, Denmark and Finland are among EU members often described as “frugal” because they tend to press for tighter spending.

The group has traditionally differed from countries including Italy, Spain and Poland, which support a larger EU budget.

European Council chief Antonio Costa began a tour of EU capitals this week to seek a compromise. EU leaders are expected to take up the issue at a Brussels summit in October, with another meeting likely in November before a December push to seal a deal.

Merz said in Dublin last month that the EU needed “cuts in all areas adding up to several hundred billion euros”. He also criticised a proposal to add 2,500 jobs at EU institutions and called for a reduction in bureaucracy.