Merz calls the EU's next seven-year budget 'unaffordable'
After the June European Council, Berlin rejects the MFF proposal and floats Ukraine 'associate membership'
Summary
Following the European Council in Brussels on 18–19 June 2026, Friedrich Merz called the Commission's proposed Multiannual Financial Framework "unaffordable and unbalanced from a German perspective," warning it would raise Germany's annual EU contribution by €15–20bn. He welcomed enlargement progress — the first negotiation cluster for Ukraine and Moldova opened 15 June — and floated "associate" EU membership for Ukraine without treaty change, citing the 1990 East-German observer-status precedent; Montenegro he called "practically ready." Berlin's objection is the counterpart to Ursula Von Der Leyen's MFF push tracked in June European Council lands the EU budget architecture and opens the Ukraine cluster, and it collides with Germany's own record borrowing in Germany's 2027 budget: record new borrowing and a €140bn planning gap. The European Union aims to settle the MFF by end-2026.
By the numbers
- +€15–20bn/year — Germany's projected extra EU contribution under the proposal.
- 15 June — first Ukraine/Moldova accession cluster opened.
- end-2026 — target for concluding the MFF.
- October 2026 — next European Council, deferring the enlargement debate.
Why it matters
As the EU's largest net contributor, Berlin's "unaffordable" verdict can sink the Commission's budget design. Merz is squeezed between resisting a bigger Brussels bill and his own €196bn of domestic borrowing — and his Ukraine "associate membership" idea offers integration without the fiscal and treaty cost full accession would impose.
What to watch
- Whether the MFF figure is cut to win German assent.
- Traction for the Ukraine "associate membership" concept.
- The October European Council's enlargement decisions.