Macron and Merz face domestic traps in EU budget standoff
The EU's next seven-year budget, valued at approximately €2 trillion, remains deadlocked as French President Emmanuel Macron and German Chancellor Friedrich Merz struggle to find common ground. Both leaders face severe domestic political constraints that limit their ability to compromise. Macron fears concessions will be weaponized by rivals ahead of the 2027 presidential election, while Merz is wary of appearing to increase taxpayer contributions to Brussels following recent electoral losses to the far-right. Despite these obstacles, diplomats suggest a Franco-German breakthrough is essential for resolving the broader impasse, with some officials noting that the two nations' positions may be closer than public statements suggest.