Germany requests cuts of hundreds of billions of euros in the proposal for the EU's multiannual budget, considering it unbalanced.

The German Chancellor Friedrich Merz announced on Tuesday, July 28, in Dublin, that Germany is requesting significant cuts to the European Commission's proposal for the European Union's multiannual budget, estimated at nearly 2 trillion euros.

Merz described the proposal as "unacceptable" and emphasized the need for cuts in all areas, without providing an exact figure, but mentioning a possible reduction of around 400 billion euros.

Germany also opposes the Commission's intention to create 2,500 new positions in European institutions, arguing that the German government itself proposes to reduce the number of employees in the public administration.

Ireland, which holds the presidency of the EU Council, is seeking a compromise among member states, but negotiations are complicated by divergent positions, with Germany and Northern Europe calling for cuts, while Italy, Spain, and Poland support a more generous budget. The dispute also extends to the introduction of new funding sources for the EU budget, with Germany rejecting proposals for corporate taxes and warning about their impact.

The Irish Prime Minister reaffirmed opposition to a European digital tax, highlighting the negative effects on the trade agreement with the USA.