Olaf Scholz’s successor, Friedrich Merz, has demanded a “fundamental modernisation” of the European Union’s budget, arguing that the bloc must become economically and militarily stronger in an age of deep uncertainty.
Friedrich Merz, the German chancellor, has declared that the European Union’s budget requires a “fundamental modernisation” to better reflect contemporary needs and help strengthen Europe in times of uncertainty and profound change. He made the remarks in a speech at the Charlemagne Prize awards ceremony, where the prize was presented to Mario Draghi, the former Italian prime minister.
Merz noted that Europe is on a path to becoming “a force capable of weathering the storms of a new era.” The EU budget, he argued, must be radically updated to make Europe more robust both economically and militarily.
The chancellor emphasised that Europe needs investments to boost competitiveness and defence, with a sharper focus on ensuring that EU funds are used to implement genuine European policies. His comments come amid negotiations over the bloc’s next seven-year budget for 2028-2034. The European Commission has proposed a €1.76 trillion framework. Germany, as the EU’s largest economy, is the biggest contributor to the budget.
Merz was critical of the current budgetary approach, saying it is drawn up “almost like in a centrally planned economy,” with more than two-thirds of the funds going to redistribution and subsidies. In his view, the budget should focus primarily on strengthening Europe and reinforcing its sovereignty.
“We must assert our interests with confidence,” Merz said. “And we must be prepared to take risks in order to defend those interests.”
Earlier this week, at a meeting with coalition partners, Merz was met with boos after he argued that Germany must “pull itself together” or risk falling behind in a rapidly changing world.
