Six EU states threaten to block bloc's budget unless "hundreds of billions" are cut

The leaders of Germany, the Netherlands, Sweden, Denmark, Austria, and Finland have called for a fundamental reform of the EU's next seven-year budget and a reallocation of resources toward the military sector and innovation.

The Financial Times reported this, citing sources.

In a joint letter, Merz and his five counterparts demand the budget be "fundamentally reformed," with money redirected toward defence and innovation. To pay for it, they want to cut funding for farmers and poorer member states, which traditionally take up around two-thirds of the EU budget.

The European Commission's proposal currently stands at close to €2 trillion. The budget requires unanimous approval, and the six signatories provide roughly 40% of EU budget revenue.

The proposal entails cutting funding for farmers  and subsidies to poorer EU nations—expenditures that traditionally account for about two-thirds of the European Union's budget.