Germany says it's 'unable to accept' EU mega budget
The plan seeks to bolster Europe's security and ramp up competitiveness, against a backdrop of soaring trade tensions with the United States, while paying off debts from a massive Covid-era loan.
The European Commission put 451 billion euros on the table under a broad "competitiveness" tag that encompasses defence and space -- together allocated 131 billion euros, a five-fold increase.
The budget earmarks up to 100 billion euros for the reconstruction of war-torn Ukraine -- as well as substantial new "flexibility" funds kept available in event of crises.
But German government spokesman Stefan Kornelius said in a statement that "a comprehensive increase in the EU budget is not acceptable at a time when all member states are making considerable efforts to consolidate their national budgets."
Germany also opposed the commission call to make companies with a turnover of more than 100 million euros pay more tax.
While Germany says the budget is too large, many EU lawmakers accuse it of not leaving sufficient funds for priorities such as climate adaptation and the agriculture subsidies that make up the biggest share of the budget.
Budget commissioner Piotr Serafin said under the commission's plans, 300 billion euros would remain to support farmers -- against around 387 billion euros, of which 270 billion in direct payouts, under the current seven-year budget.
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'Black Wednesday for farmers'
Brussels says there would be an overhaul of the Common Agricultural Policy (CAP) subsidies -- with some funding moved to other budget columns.
But the future of the CAP is headed for a fight, with farmers warning against cuts to their slice of the EU pie -- and marching Wednesday in Brussels to show their resolve.
Hundreds of European farmers joined a protest outside the commission building in Brussels organised by a pan-European agriculture lobby group, Copa-Cogeca.
The group described it as a "Black Wednesday" for farmers, accusing Brussels of seeking to "dismantle the 'common' nature of the CAP through concealed budget cuts".
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The warning raised the spectre of another confrontation after last year's protests across Europe by farmers upset at cheap imports, low margins and the burden of environmental rules.
Hungary, a staunch critic of Brussels and Russia's closest ally in Europe, meanwhile tapped into the rural anger ahead of the plan's release -- while slamming the money for Kyiv.
"Ukraine would get a massive funding boost, while European farmers lose out," Hungarian Prime Minister Viktor Orban said.
Battle lines drawn
The announcement sets the stage for two years of fraught negotiations between the European Parliament and 27 member states.
Already stretched thin, some states, such as Germany, are unwilling to contribute more to the common pot.
Unlike in the previous budget, the EU has debts due from the Covid pandemic, when states teamed up to borrow 800 billion euros to support the bloc's economy. These are estimated to cost 25-30 billion euros a year from 2028.
The previous 2021-2027 budget was worth around 1.2 trillion euros and made up from national contributions and money collected by the EU such as customs duties.
National contributions will grow slightly, from 1.13 percent of member states' gross national income to 1.15 percent plus 0.11 percent devoted to repaying the Covid loan.
The commission will also seek to raise about 58 billion euros a year collecting money directly through five instruments, including its carbon border tax and a levy on electronic waste.
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Member states gave a sneak peek at the fights to come.
France's Europe minister Benjamin Haddad hailed the commission's "ambition" but Dutch finance minister Eelco Heinen -- representing one of the frugal states -- said the proposed budget was "too high".
Members of the EU parliament, however, made it clear the budget was not enough in their view.
"However you try to package this, what we have is a real-terms investment and spending freeze," said a joint statement from the EU lawmakers tasked with steering the budget through parliament.
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DW
42 minutes ago
- DW
German government takes tougher tone with Israel – DW – 08/02/2025
Germany's foreign minister visited Jerusalem on Friday and insisted that more aid be let into Gaza. Despite the tough talk, experts say it's unlikely there will be any consequences if Israel doesn't do as Germany asks. After his talks with Israeli President Benjamin Netanyahu and representatives from the United Nations in Jerusalem, German Foreign Minister Johann Wadephul tried to put more pressure on the Israeli government. On Friday he made an urgent appeal to the Israelis: The government should immediately allow the UN to help the hungry people in Gaza. "That is why we call on Israel to allow the UN to transport and distribute the aid safely," Wadephul said, while in Jerusalem. "This was also part of my discussion with the Israeli government yesterday. The humanitarian catastrophe in the Gaza Strip must be ended now, with the help of the efficient, established UN system." The day before Wadephul had described the situation in Gaza in dramatic tones. The death and suffering there was "unimaginable," he said. Wadephul also appealed to the militant group Hamas, asking them to stop fighting and to return all the hostages they still held. Hamas is classified as a terrorist organization by Germany, the US, Israel and other countries. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Israel's foreign minister Gideon Saar didn't publicly express an opinion on Germany's suggestions. But Wadephul told reporters he thought Germany's message had been understood. Saar did reject accusations from his colleague in the Israeli government, the far-right extremist Itamar Ben-Gvir, Israel's minister of national security. On social media platform X, Ben-Gvir said that 80 years after the Holocaust, Germany was once again supporting Nazis. Before he left Germany, Wadephul had warned that Israel was becoming increasingly isolated internationally. He also said Berlin would respond to any unilateral actions by Israel and was critical of potential Israeli plans to annex the occupied West Bank. Israel's Saar answered Ben-Gvir on social media too. "I strongly reject Minister Ben-Gvir's statements about Germany. They are unnecessary and harmful. Germany is a friendly country and Foreign Minister Wadephul is a friend of Israel. This does not change, even when there are differences of opinion between us." Germany is still pushing for a two-state solution to the intractable problems in the Middle East. Wadephul confirmed the right of the Palestinians to their own state after he met with Palestinian President Mahmoud Abbas on Friday. However Netanyahu's government has rejected that idea in the recent past. Even as Germany criticizes the expansion of Israeli settlements in the West Bank, Israel's foreign minister sees the settlements as justified. German Chancellor Friedrich Merz had sent Wadephul to Israel after a meeting of the country's so-called security cabinet. This group includes the ministers of foreign affairs, defense, interior and finance, as well as various intelligence services. Wadephul's mission was to make it clear that the humanitarian crisis in Gaza must be resolved and he was also to assess whether and how the Israeli government could be convinced to do this. Over this weekend, he is to report back to the Chancellor and the security cabinet. The results of this are hard to predict. Whether the German government would use sanctions against Israel, stop weapons deliveries or recognize a Palestinian state is unclear. However observers in Berlin says it's unlikely any concrete steps will be taken, because of Germany's special responsibility towards Israel, after committing the Holocaust. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Criticism is likely but sanctions won't happen, says Martin Huber, the secretary general of the conservative, Bavaria-based Christian Social Union, or CSU. Even so, the tone German politicians are using is becoming sharper, as more and more pictures of starving children in Gaza emerge. The leader of the Social Democrats' parliamentary group, Dirk Wiese, told local journalists that the time for talk has passed. "We need political pressure and concrete progress," he said. The Social Democrats are part of Germany's governing coalition together with the CSU and the Christian Democratic Union, or CDU. Up until now the German government has been holding back, Andreas Reinicke, the director of the German Orient-Institute, told public radio Deutschlandfunk. But that's for good reasons, he argued, in reference to the Holocaust. However if the world now really wants a two-state solution, "then we will have to do this not only verbally, but also with an active process," Reinicke said. "I believe Germany's influence [on Israel] is greater than is commonly assumed." Meanwhile the Israeli government disputes that locals in Gaza are going hungry and insists that the siltation is actually better than depicted in the international press. Foreign Minister Saar accused media of showing misleading pictures of hungry children. "This is what a modern blood libel looks like," he wrote on social media platform X, referring to a-now-well-known picture of Osama al-Raqab, an emaciated 5-year-old. Al-Raqab has cystic fibrosis and was evacuated to Italy in June, Saar pointed out. The Israeli government's position on the issue is in opposition to what international aid agencies have observed and eyewitnesses have reported. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Wadephul also said that the thesis often insisted upon by the Israeli government — that Hamas will benefit from any aid shipments they allow in — is no longer justified. It could well be that Hamas previously diverted some of the shipments, he said. "But the humanitarian catastrophe in the Gaza Strip is now so great that it is not justified to put up further hurdles here," Wadephul insisted. Another contentious point: While the German foreign minister and others argue that the UN and the World Food Program should be taking care of supplies into Gaza, Israel and its main ally, the US, insist the newly created and increasingly controversial Gaza Humanitarian Foundation, or GHF should be. On Friday, Steve Witkoff, the US special envoy to the Middle East, demonstratively visited a GHF aid distribution site near Rafah, in Gaza. The US ambassador in Israel, Mike Huckabee, claims the GHF has given out 100 million meals in two months. However the UN and other aid organizations say the GHF is not working properly. During past weeks, there have been reports of hundreds of people killed or wounded while trying to get aid from the GHF. On Friday, the German air force began to help, dropping palettes of aid into the Gaza Strip, flying out of Jordan. However even Germany's foreign minister considers this more a symbolic than anything particularly helpful. The crucial thing now is to send hundreds of trucks carrying food into the Gaza Strip daily, Wadephul said while in view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Local Germany
2 hours ago
- Local Germany
Germany says 'very insufficient' aid entering Gaza
The criticism came after Foreign Minister Johann Wadephul visited the region on Thursday and Friday and the German military staged its first food airdrops into Gaza, where aid agencies say that more than two million Palestinians are facing starvation. Germany "notes limited initial progress in the delivery of humanitarian aid to the population of the Gaza Strip, which, however, remains very insufficient to alleviate the emergency situation," government spokesman Stefan Kornelius said in a statement. "Israel remains obligated to ensure the full delivery of aid," Kornelius added. READ ALSO: Spain air-drops 12 tonnes of food aid over Gaza Facing mounting international criticism over its military operations in Gaza, Israel has allowed more trucks to cross the border and some foreign nations to carry out airdrops of food and medicines. International agencies say the amount of aid entering Gaza is still dangerously low, however. The United Nations has said that 6,000 trucks are awaiting permission from Israel to enter the occupied Palestinian territory. The German government, traditionally a strong supporter of Israel, also expressed "concern regarding reports that large quantities of humanitarian aid are being withheld by Hamas and criminal organisations". Israel has alleged that much of the aid arriving in the territory is being siphoned off by Hamas, which runs Gaza. The Israeli army is accused of having equipped Palestinian criminal networks in its fight against Hamas and of allowing them to plunder aid deliveries. "The real theft of aid since the beginning of the war has been carried out by criminal gangs, under the watch of Israeli forces," Jonathan Whittall of OCHA, the United Nations agency for coordinating humanitarian affairs, told reporters in May. Advertisement A German government source told AFP it had noted that Israel has "considerably" increased the number of aid trucks allowed into Gaza to about 220 a day. Berlin has taken a tougher line against Israel's actions in Gaza and the occupied West Bank in recent weeks. The source said that a German security cabinet meeting on Saturday discussed "the different options" for putting pressure on Israel, but no decision was taken. A partial suspension of arms deliveries to Israel is one option that has been raised. Hamas militants launched an attack in Israel on October 7, 2023, that resulted in the deaths of 1,219 people, according to an AFP tally based on official Israeli figures. Israel's military offensive on Gaza since then has killed at least 60,249 Palestinians, according to Gaza's health ministry. The UN considers the ministry's figures reliable.
DW
4 hours ago
- DW
Inside the EU's stalled plan to penalize Israel – DW – 08/02/2025
For the first time ever, EU officials have threatened to restrict Israeli access to research funds over its conduct in Gaza. But the move is still under review, and many say it is too little, too late as famine looms. Something changed in Brussels over the last few days: After more than a year and a half of urging Israel to end bombardments and blockades of Gaza, the EU took a step toward backing its words with action. "The mood has hardened significantly," one EU diplomat who asked not to be named told DW. With the United Nations warning of a "grave risk of famine" in Gaza, the EU's executive — for the first time — has proposed penalizing Israel by barring Israeli startups from accessing some EU research funds. "With its intervention in the Gaza Strip and the ensuing humanitarian catastrophe, including thousands of civilian deaths and rapidly rising numbers of spreading extreme malnutrition specifically of children, Israel is violating human rights and humanitarian law and thus is in breach of an essential principle of ... EU-Israel cooperation," the European Commission wrote in its proposal on Monday. But the plan isn't over the line yet. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The new proposal hit a hurdle immediately after reached the EU's 27 capitals. Some states, including Germany, were asking for more time to asses the plan, EU diplomats told DW. And without Berlin's backing, the plan is unlikely to advance. On Monday, Israel's Foreign Ministry called Brussels' proposal "unjustified" and claimed any such punitive measures would only serve to "strengthen Hamas." Oxfam's Bushra Khalidi told DW there is now "clearly growing pressure within some pockets of the [EU] Commission, backed by some EU countries, to shift course" toward taking action on Israel. "But let's be clear," she added. "The fact that the EU cannot even agree on the smallest step is a disgrace. The bar is on the floor, and yet the EU and some EU countries are still managing to trip over it." Ever since the militant group's attacks on October 7, 2023, the EU has been united in its condemnation of Hamas — classed as a terrorist organization by the bloc — and in its call for the release of Israeli hostages. Beyond that, however, every statement on the EU's ties with Israel has been fiercely debated across a deeply divided bloc. On one end of the spectrum, there are countries like Spain and Ireland. Since February 2024, Madrid and Dublin have been calling for an "urgent review" into Israeli compliance with the agreement that governs its trade and relations with the EU. On the other end, Hungary is seen as Israel's staunchest EU ally, and has been blocking any measures requiring bloc-wide backing. This includes sanctions on a handful of violent Israeli settlers — in contrast to the UK, an ex-EU member, which approved a similar measure months ago. Berlin has also been seen as a strong Israeli ally. Germany views itself as having a historic responsibility toward Israeli security, due to its Nazi past and its systemic murder of six million Jews during the Holocaust. While the EU remains divided on Israel, first signs of a diplomatic shift came in May of this year, when most of the bloc's 27 members backed Spain and Ireland's year-and-a-half old call to review Israel's compliance with the EU association agreement. The Netherlands was among countries which switched camps and prompted the turning point. Germany stuck to its position and warned against the review, urging dialogue instead. However, Berlin was overruled and the investigation went ahead. The review pointed to a series of suspected Israeli breaches, from blocking aid entry to Gaza and attacking hospitals and journalists, to expanding illegal settlements. In a letter seen by DW, Israel blasted the review as a "moral and methodological failure," claiming the UN reports the review was based on were "anything but impartial." But the EU executive stood by its findings and in June, most EU states asked the bloc's officials to draw up a list of possible punitive measures. According to a leaked internal document seen by DW, that list includes halting visa-free travel for Israeli citizens, restricting student exchanges, banning imports from illegal settlements, and sanctioning some Israeli ministers. Some of the measures — such as sanctions — would require unanimous EU support. Others — such as trade restrictions — only require a rubber-stamp from a weighted majority of EU governments. However, even those measures would need to be endorsed from at least a few of the EU's most populous states — Germany, France, Italy, Spain and Poland. Armed with these potential options, the EU's top diplomat Kaja Kallas held talks with her Israeli counterpart — and announced what seemed like a breakthrough just days before EU ministers were due to discuss punitive measures. "Significant steps have been agreed by Israel to improve the humanitarian situation in the Gaza Strip," Kallas said in a statement on July 10. Germany also helped broker the so-called "common understanding." EU officials said Israel's commitments included facilitating a "substantial increase" in trucks entering Gaza and reopening some aid routes. When EU ministers met on July 15, they decided not to advance any steps against Israel, instead asking for regular reports on its compliance with the new deal. Israel's foreign minister called that outcome "an important diplomatic success." "We managed to fend off all types of obsessive attempts by several countries to impose sanctions on Israel in the EU," Gideon Sa'ar wrote on X later that day. But as the month of July went on and warnings of starvation mounted, Brussels' diplomacy option looked less and less effective. "There has been some progress," the EU's humanitarian aid chief Hadja Lahbib said on Friday in a post on X. "But let's be honest: it's still a drop in the ocean. Without access, we cannot properly assess needs or deliver aid." The Israeli government told DW it has "begun implementing significant measures to facilitate humanitarian aid," including "humanitarian pauses," and designating "secure routes" for food delivery. The statement blames the UN and Hamas for the crisis and claims there is "no starvation" in Gaza — despite aid groups' evidence to the contrary. But most European governments say Israeli measures fall far short. Some states including Sweden, the Netherlands and Spain are now openly calling for the EU to go much further and freeze its trade deal with Israel. That would make it more expensive and difficult for Israeli firms to export goods to the EU — Israel's biggest trading partner. "The situation in Gaza is utterly deplorable, and Israel is not fulfilling its most basic obligations and agreed-upon commitments regarding humanitarian aid," Swedish Prime Minister Ulf Kristersson wrote on X on Thursday. "Economic pressure on Israel must increase," he added. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Restricting trade is a power that lies with the EU's executive in Brussels, meaning national governments can't take matters into their own hands. But individual EU states have taken other decisions to pile pressure on Benjamin Netanyahu's government. Several countries including Spain and Belgium have restricted arms exports to Israel. And with EU-level sanctions looking unlikely, Slovenia and the Netherlands have also banned two far-right Israeli ministers from entering their territory earlier this month, accusing them of promoting "ethnic cleansing." In a visit to Israel on Thursday, Germany's foreign minister warned his Israeli counterpart that he risked isolation. Capitals across Europe watched the visit carefully — because any shift in Germany's approach could determine whether planned EU penalties will kick in, or remain an empty threat.
