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.
Dmytro Basmat
(Updated: )
