Brussels proposes a 67% increase in EU budget, despite Brexit

In July of 2025, the European Commission proposed a record €2 trillion budget for the EU, amounting to 1.26% of the EU’s gross national income.

Now, a group of 6 “frugal” EU countries – Germany, Denmark, the Netherlands, Austria, Finland and Sweden – are calling for a budget reduction.

The EU’s budget functions over a 7-year budget cycle, called the Multiannual Financial Framework (MFF). The union is currently operating under the 2021–2027 MFF, and the 2028–2034 MFF is being debated.

For the new MFF to be approved, unanimous agreement of all 27 EU member states in the Council and consent of the European Parliament are required. EU politicians are aiming to secure this approval by the end of 2026 [1].

In 2014-2020, the pre-Brexit EU budget originally landed at €960 billion [2] before reaching €1.083 trillion [3] after revisions. The 2021-2027 MFF amounted to €1.2 trillion [4]. The proposed new budget of €2 trillion thus amounts to a considerable 67% increase over the next seven years.

The UK’s formal withdrawal in 2020 removed a major financial contributor, but Brexit did not produce the expected shrink in EU spending [5].

The additional increase would be distributed across various spending categories including regional development, agriculture, research, border security, climate, and defense with special increased funds for border management and internal security [6].

The six “frugal” states, who are major EU budget contributors, have jointly demanded substantial cuts to the proposed budget. German Chancellor Friedrich Merz declared the increase as “simply unaffordable” due to fiscal pressures member states would face under the new MFF, and has pushed for at least a €400 billion reduction from the original proposal [7].

The group of six is advocating for expense reductions in all departments, with more priority for European defense, border migration management, and economic competitiveness while keeping institution staffing unchanged.

In a recent press conference, EU Council President Antonio Costa supported the €2 trillion proposal and called for the next long-term budget to reflect today’s geopolitical reality [8], supporting Brussels’ claim of “increased challenges” in security, migration, economy, and energy [9].

The divide between the EU Council and the frugal states reflects a larger disagreement over the role of the EU [10]. Brussels is calling for more financial resources to address “economic and geopolitical challenges” while the major contributors want to prioritize existing commitments through a more focused and restrained budget.

The European freedom-oriented press is siding with the frugal states. Liberal French journal Contrepoints supported Germany and its counterparts’ call for restraint, arguing that “public spending must be refocused on core state functions.” [11], opposing the view that throwing money at problems is the best way to solve them.

1. Council of the European Union, The EU’s long-term budget for 2028–2034, updated July 15, 2026. https://european-union.europa.eu/principles-countries-history/eu-countries_en ↩
2. 2 EUR-Lex, Multiannual EU budget (2014–2020), summary of Council Regulation (EU, Euratom) No 1311/2013, European Union. The source states that the 2014–2020 MFF amounted to €960 billion in commitments and €908.4 billion in payments, expressed in constant 2011 prices. https://eur-lex.europa.eu/EN/legal-content/summary/multiannual-eu-budget-2014-2020.html ↩
3. 3 European Commission, Consolidated annual accounts of the European Union 2015, Official Journal of the European Union, C 380, October 14, 2016. See the financial discussion and analysis on the EU budget and the 2014–2020 Multiannual Financial Framework. https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1783522565263&uri=CELEX%3A52016XC1014%2806%29 ↩
4. 4 European Commission, The 2021–2027 EU budget – What’s new?, European Commission. The Commission states that the 2021–27 Multiannual Financial Framework amounts to €1.211 trillion in current prices (€1.074 trillion in 2018 prices). The proposed 2028–34 MFF is approximately €1.985 trillion in current prices. The comparison yields an increase of approximately 64%. https://commission.europa.eu/strategy-and-policy/eu-budget/long-term-eu-budget/2021-2027/whats-new_en ↩
5. 5 European Commission, EU budget 2028–2034 explained. https://commission.europa.eu/topics/budget/eu-budget-2028-2034-explained_en ↩
6. 6 European Union, NextGenerationEU, Publications Office of the European Union, 2023. Official EU publication describing the NextGenerationEU recovery instrument and its funding. https://op.europa.eu/en/publication-detail/-/publication/06e7e2c4-bca1-11ed-8912-01aa75ed71a1/language-en ↩
7. 7 German Federal Government, Press conference by Federal Chancellor Merz and Prime Minister Martin during the Chancellor’s visit to Ireland, July 28, 2026. Statement by Chancellor Friedrich Merz on the EU budget and proposed staffing increases. https://www.bundesregierung.de/breg-de/suche/pressekonferenz-von-bundeskanzler-merz-und-premierminister-martin-zum-besu ch-des-bundeskanzlers-in-irland-am-28-juli-2026-2448566 ↩
8. 8 European Council, Press conference by President António Costa following the European Council meeting. Statement concerning the next Multiannual Financial Framework and the need for the EU budget to reflect the current geopolitical context. https://www.youtube.com/watch?v=EhFCiMUWKzs ↩
9. 9 European Commission, EU budget 2028–2034 for a stronger Europe, July 16, 2025. The Commission states that Europe’s “increasing challenges” in security, defence, competitiveness, migration, energy and climate resilience require “a strong and forward-looking response.” ↩
10. 10 Contrepoints, “Les pays frugaux refusent le budget ultra-dépensier de l’Union européenne” . The article argues that “public spending must be refocused on core state functions” in discussing the opposition of Germany and other “frugal” member states to the proposed EU budget. https://contrepoints.org/les-pays-frugaux-refusent-le-budget-ultra-depensier-de-lunion-europeenne/ ↩
11. 11 Contrepoints, “Les pays frugaux refusent le budget ultra-dépensier de l’Union européenne.” The article argues that “public spending must be refocused on core state functions” in discussing the opposition of Germany and other “frugal” member states to the proposed EU budget. https://contrepoints.org/les-pays-frugaux-refusent-le-budget-ultra-depensier-de-lunion-europeenne/ ↩