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Berlin wants more defense, no budget hike in EU plan, FT reports

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Berlin wants more defense, no budget hike in EU plan, FT reports
Photo for illustrative purposes. Soldiers of the Bundeswehr, Germany's armed forces, carry flags as they attend a ceremony to mark the creation of the new Bundeswehr territorial defense command on September 26, 2022 in Berlin, Germany. (Sean Gallup/Getty Images)

Germany aims to prioritize defense spending in the next EU budget while firmly opposing any increase in national contributions, according to a position paper obtained by the Financial Times (FT).

As the bloc’s largest economy and top net contributor, Berlin wants EU funds to support joint arms procurement and help expand production capacity among European weapons manufacturers.

The paper reportedly reflects Germany’s broader shift toward higher domestic military spending in response to Russia’s ongoing threat and amid calls by U.S. President Donald Trump for Europe to shoulder more of its own defense.

Berlin argues the EU budget should also fund dual-use technologies, military transport corridors, and other security-related initiatives despite current treaty restrictions on defence spending from the common budget, according to FT.

To free up funds for these priorities, Germany proposes cutting administrative costs and simplifying the EU budget structure. The government supports reducing the number of programes, granting the European Commission more flexibility to shift funds, and focusing spending on strategic areas such as cross-border infrastructure, energy security, digitalisation, and innovation.

Germany also opposes any extension of the EU’s post-Covid joint borrowing programme, stressing that repayments for the 800 billion euro fund must begin in 2028 as scheduled. While Berlin is open to discussing new EU-level revenue sources such as a carbon border levy or minimum corporate tax, it continues to reject an increase in direct national contributions to the budget, which currently total about 1% of EU GDP.

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Olena Goncharova

Head of North America desk

Olena Goncharova is the Head of North America desk at The Kyiv Independent, where she has previously worked as a development manager and Canadian correspondent. She first joined the Kyiv Post, Ukraine's oldest English-language newspaper, as a staff writer in January 2012 and became the newspaper’s Canadian correspondent in June 2018. She is based in Edmonton, Alberta. Olena has a master’s degree in publishing and editing from the Institute of Journalism in Taras Shevchenko National University in Kyiv. Olena was a 2016 Alfred Friendly Press Partners fellow who worked for the Pittsburgh Post-Gazette for six months. The program is administered by the University of Missouri School of Journalism in Columbia.

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