German Chancellor Friedrich Merz said Tuesday the EU needs to save hundreds of billions of euros and show more "ambition" on competitiveness as haggling starts over the bloc's 2028-2034 budget.
The European Commission has proposed a two-trillion-euro ($2.3 trillion) spending plan for that period but Germany and other members of the so-called "frugal" bloc within the EU have made clear this is too high.
"We need a budget proposal with cuts in all areas adding up to several hundred billion euros," Merz said at a press conference alongside Micheal Martin, prime minister of current EU presidency holder Ireland.
Merz said "we cannot afford exorbitant increases in spending" at a time when budgets are being consolidated at a national level.
Martin said the bloc needed a budget "that meets its future needs and ambitions" while "reflecting our current economic situation", adding that Ireland would work towards a "compromise".
"Ireland has made improving Europe's economic competitiveness a priority for our Presidency," said Martin.
"I believe that if we all approach the task in the right spirit, agreement should be possible by the end of the year."
Brussels had proposed funding new spending with a tax on big businesses but Merz said that while he was prepared to discuss "new resources" for the EU, "an additional tax on business at a European level is not something we can consider".
Merz also said that the bloc's efforts to increase competitiveness had not yet gone far enough.
"I am worried that the zeal in the European Union and the level of ambition have noticeably declined," he said.
"We must do more," Merz said, adding that authorisation procedures for investments were still "too long" and calling for a "thoroughgoing reduction in bureaucracy" at the European level.
The European Commission recently drew the ire of green activists by proposing to soften its carbon pricing mechanism, a scheme criticised by big European businesses.
Merz said on Monday that competitiveness and climate protection had to "go hand in hand".
Latest stories
Economie/Finances Kering, en pleine transformation, renoue avec la croissance au deuxième trimestre
Le groupe de luxe français Kering, en pleine phase de transformation, a annoncé mardi des ventes en légère croissance au deuxième trimestre, signe, selon lui, de l'efficacité de sa nouvelle...
Economie/Finances La Bourse de Paris au bonheur des valeurs sûres face aux remous de l'IA
La Bourse de Paris a terminé en hausse pour le troisième jour de suite, poussée par la baisse du pétrole, le recul des taux et le repli des investisseurs sur des valeurs sûres face aux...
La Une Mégafeu en Gironde : "stabilisé" mais avec 14 reprises de feu, avant l'arrivée d'un nouveau "pic de chaleur"
Le mégafeu qui ravage la Gironde est "stabilisé" mais a enregistré mardi un nombre "très important" de reprises de feu, 14 au total, qui ont forcé l'évacuation préventive de milliers de touristes, avant l'arrivée...