Merz leads a bloc pressing deep EU budget cuts as Costa seeks a deal

German Chancellor Friedrich Merz gathers leaders from the Netherlands, Finland, Austria, Denmark and Sweden to push for hundreds of billions in cuts to the next seven-year EU budget, while António Costa tours the bloc courting compromises; the debate centers on shrinking the budget, reorienting spending from agriculture toward defense and security, and possibly funding reforms through new EU taxes or “own resources.” With no precise numbers yet, unanimity is required for any deal, and upcoming elections in Saxony-Anhalt and Sweden could influence leverage, as October compromise figures loom ahead of a year-end agreement.