Six EU Capitals Demand €2tn Budget Slash to Fund Defense
German Chancellor Friedrich Merz and five allied leaders have issued an ultimatum to the EU, demanding that the proposed €2 trillion budget for 2028-2034 be cut by hundreds of billions of euros. The signatories, who account for 40% of EU revenue, argue the current proposal is unrealistic given domestic fiscal pressures and insist that spending must shift from agriculture and regional aid toward defense and innovation. While the European Council aims for a deal by year-end, a bloc of 17 countries opposes the cuts, and Ireland, currently holding the rotating presidency, is tasked with producing a compromise proposal by mid-October.