Germany urges the European Union to reform its budget

Kinshasa, May 14^th, 2026 (CPA). –The German Chancellor Friedrich Merz has urged on Thursday the European Union to reform its budget towards more investment and fewer subsidies, whilst closing the door on joint borrowing advocated by the Italian economist, international media have reported. “I call on the European Union to reduce the budget and to stimulate investment in competitiveness and defence. A sovereign Europe needs a budget approved by the former European Central Bank President Mario Draghi,” has declared Friedrich Merz. “More than two-thirds of European funds go towards redistribution and subsidies. We cannot meet the challenges of the 21st century with a 20th-century budget,” he has added. In his hard-hitting report on European competitiveness in 2024, the German Chancellor has called for a fundamental change of direction by the 27 member States to remain competitive with the United States and China, notably through joint investment. “The budget has remained virtually unchanged in terms of both content and structure over the past few decades,” the German leader has criticised. The European leaders are expected to adopt a common position on the draft EU budget for the period 2028–2034 by June. The so-called “frugal” countries, led by Germany and the Netherlands, are calling for greater spending discipline. For its part, Berlin also opposes joint European borrowing, which is strongly supported by France and Mario Draghi, a point Friedrich Merz has repeated on Thursday. “An excessive debt threatens sovereignty and limits the capacity for action,” has insisted the Chancellor, who is also targeting Germany’s constitutional constraints. It should be remembered that in the spring of 2025, Berlin has relaxed its strict debt rules to boost investment in defence and infrastructure, following years of inaction. For his part, Mario Draghi has expressed scepticism about the proliferation of free trade agreements led by Brussels – and strongly supported by Berlin – in order to restore growth. “It is easier to conclude new trade agreements than to tackle the unfinished business at home,” starting with the “incomplete” single market and the “fragmented” energy market”, he has concluded.