Germany Faces Biggest Loss in EU’s 2028-2034 Budget Reform

Germany Faces Biggest Loss in EU’s 2028-2034 Budget Reform

Germany is one of the biggest losers in the European Commission’s proposal for the multi‑annual EU budget covering 2028‑2034. Internal calculations from the European Parliament, reported by the FAZ, show that Germany would receive €57.3 billion over the seven years – 11 % less than the amount allocated in the previous EU budget for 2021‑2027. The cut is expected to hit particularly the subsidies that have been flowing to German farmers.

A briefing from the Directorate-General for Budgeting, strictly marked as “for internal use only” highlights this. Overall, the funds for EU member states will shrink by 8 % from €758.93 billion to €698.27 billion. Slovenia and Ireland face the steepest losses, slashing 13 %. France, Italy, Spain, Portugal and the Czech Republic will see a 12 % reduction, while Austria drops by 9 %. Estonia, Latvia, Malta, and Sweden actually receive increased funding.

The money bundled in the so‑called “national envelopes” is meant to finance a range of policy areas – farm support, regional development, social programmes, and other responsibilities. Until now, each of these areas has its own detailed programmes and budget items. The Commission now aims to overhaul the budget fundamentally and consolidate expenditures. Member states will largely choose how to deploy the funds, though they must outline the allocation in “national development plans”.

For Germany, the briefing means at least €31.87 billion would go to farmers – almost €12 billion less than before. Had Germany utilised all the free money earmarked for agriculture, it could keep the level of support relatively unchanged. However, this would force a corresponding cut in other areas, especially regional development programmes.