Germany, Austria, Denmark, Finland, the Netherlands, and Sweden issued a joint statement asserting that the European Union must make clear decisions and revise its budgetary priorities, similar to how this is done in their national countries.
These six countries, dubbed the 'frugal' or 'budget hawks,' are attempting to form a common position. Their meeting took place in Berlin at the invitation of German Chancellor Friedrich Merz, with two other states participating via video conference.
Ahead of expected tense discussions among the 27 members regarding the next multi-annual budget, Chancellor Merz met with leaders from three of these 'frugal' countries. Participants included Austrian Chancellor Christian Thaler, Danish Prime Minister Mette Frederiksen, and Finnish Prime Minister Petteri Orpo, while the Netherlands and Sweden joined online.
At a press conference in Berlin, Merz emphasized that these six nations finance about 40% of the European budget. He stated that they are not stingy, but the approach proposed by the Commission 'simply does not fit our times,' and advocated for balanced cuts 'of several hundred million euros' to Brussels' budget proposal.
These six countries oppose any increase in public spending proposed by the European Commission for the EU budget period from 2028 to 2034. The executive body, led by Ursula von der Leyen, proposed a total of 2 billion euros, of which 33.5 billion euros were to go to Portugal.
The Commission's proposal represents a significant increase, about 60%, compared to the current multi-annual budget. Brussels justified this by citing the need to finance priorities such as defense, the ecological transition, and competitiveness.
Merz reiterated that 'we simply cannot afford an excessive increase in spending' while the EU is making 'significant efforts to consolidate public finances.' During the 27-country summit in June, Merz also openly opposed French President Emmanuel Macron, who plans to use borrowed funds to finance the future budget.
The leaders of the European countries aim to reach a consensus by the end of the year, before upcoming elections in several member states in 2027, which could lead to radical changes in the European Council. Discussions on the budget plan are scheduled for three summits before the end of 2026.