Merz rallies EU budget hawks as Costa seeks compromise on 2028-2034 framework
German Chancellor Friedrich Merz is convening a bloc of fiscally conservative leaders to demand significant cuts to the EU's next multi-annual budget, while European Council President António Costa tours capitals to broker a compromise. The core dispute involves the total size of the 2028-2034 budget, the shift of spending from agriculture to defense, and the introduction of new EU revenue streams. A deal is required by year-end to avoid funding disruptions, but domestic political pressures in Germany and other nations complicate negotiations.
