On Friday, European leaders engaged in a heated discussion about the next budget of the European Union, as Germany confirmed its categorical refusal to borrow, in contrast to the French position, while the countries of the south and east called for increased funding for agriculture and rural development.

German Chancellor Friedrich Merz said, on the second day of the Brussels summit, part of which was devoted to discussing the budget issue: “I repeat my demand that the European Union not resort to any borrowing. We must not do that.”

Thus, the German Chancellor directly opposes French President Emmanuel Macron, after he called for months to borrow to help finance the future European budget, allowing for an increase in investments, according to what was reported by Agence France-Presse.

Macron repeated this position, on Thursday evening, in an interview with France 2, and said: “Europe needs more investment… We need a much larger budget to pump more public funds,” citing artificial intelligence.
Last year, Brussels proposed a total budget for the coming years (2028-2034) worth two thousand billion euros, a significant increase compared to the current budget.

This month, Cyprus, which holds the rotating presidency of the European Union, submitted its first counter-proposal on behalf of the 27 member states, calling for only a “slight 2% reduction” compared to the Commission’s proposal.

European Commission President Ursula von der Leyen commented after the summit, saying: “Certainly, no one found their ideal budget” in the first draft, “but it constitutes a solid basis for negotiation.”

Pending agreement on the numbers, the 27 member states agreed on the general structure of the budget, which the Commission subjected to a fundamental review.

Regarding spending, several capitals, led by Berlin, see the Cypriot counter-proposal as very hesitant, and are demanding greater savings in planned expenditures.

In contrast, 17 countries from southern and eastern Europe lined up in a bloc called “Friends of Cohesion,” calling for a more generous budget that would benefit farmers and provide support for maintaining social and territorial cohesion.

In light of these divergent positions, the negotiations remain difficult, knowing that Brussels hopes to complete them before the end of the year, to avoid being affected by the elections scheduled to be held next year in a number of countries, especially France.