Germany has hardened its position on the European Union's next long-term budget, demanding cuts of at least several hundred billion euros and ruling out any new round of common borrowing. The stance, outlined by Germany's ambassador to the EU, Thomas Ossowski, sets the stage for a contentious negotiation among the bloc's 27 member states.
In an interview with Euronews, Ossowski said the European Commission's initial proposal was "far too high." The Irish presidency of the Council has already trimmed around €140 billion from the plan, but Berlin insists that is insufficient. "We are not there yet," Ossowski said. "More cuts will definitely be necessary."
The next milestone is a revised negotiating framework from European Council President António Costa, expected ahead of an informal summit in late November. EU leaders hope to reach an agreement before Christmas, though Ossowski acknowledged that timetable is "ambitious."
No new common debt
Germany is also drawing a firm red line on financing. Asked whether Berlin would accept another round of joint EU borrowing if member states refuse to raise their contributions, Ossowski was unequivocal: "No, definitely not new common borrowing." He argued that further joint debt would erode national sovereignty. While Berlin is open to discussing new "own resources" for the EU, it rejects the idea of an EU-level tax on companies.
The German push is part of a broader vision for a leaner, more strategically focused budget. Ossowski said spending should prioritise competitiveness, innovation, research, defence, security and support for Ukraine. Agriculture and cohesion funding would remain, but Germany wants their combined share cut from roughly 66% of the budget today to 50%. "We think that is a sustainable approach," he said.
The budget battle comes as EU leaders face mounting pressure to finance Ukraine's war effort. Ossowski rejected the notion that additional support for Kyiv would necessarily come at the expense of farmers, families or cohesion funds. The €90 billion in loans already arranged for Ukraine, he noted, were financed outside the regular EU budget using the bloc's existing "headroom." But further support will be needed to get Ukraine through the winter and into next year.
"Germany stands with Ukraine and the European Union stands with Ukraine," Ossowski said, while stressing that Berlin also expects the G7 and other international partners to contribute.
Ossowski was sceptical about the latest US-led diplomatic push to end the war. "We don't see any readiness by Russia to engage in any kind of negotiations," he said, pointing to continued Russian attacks on Ukrainian cities and civilians. Until that changes, European support for Kyiv will continue, he said.
For Germany, the stakes extend beyond Ukraine. Ossowski cast the conflict as a test of Europe's ability to defend the rules-based international order and its own security architecture. "The European Union is now the actor who defends the rule-based international order," he said.
The message from Berlin is clear: a smaller EU budget, no new common debt, but more spending on the geopolitical priorities Germany believes Europe can no longer afford to ignore. The coming weeks will reveal whether other member states, particularly those in southern and eastern Europe that rely heavily on cohesion and agricultural funds, can be persuaded to accept such a drastic shift. The recent summit ended in deadlock, and the path to a Christmas deal remains steep.
Some EU commissioners have warned that deep cuts would weaken the bloc's global clout, while humanitarian officials have cautioned that forced reductions could have dire consequences. Germany's stance also resonates with broader debates about the EU's future direction, as seen in other political forces pushing for budget caps. The outcome of these negotiations will shape the EU's ability to act on the world stage for years to come.
