Drastic budget cutbacks essential to fund Europe's defense, Germany and allies warn

German Chancellor Friedrich Merz and the leaders of five other major European economies have urged "hundreds of billions" of dollars worth of cuts to the next EU budget as part of efforts to fund the continent's defense. The European Union's next long-term budget will cover the period from 2028 to 2034, with officials aiming to reach an agreement on spending priorities and limits by the end of this year. Over the summer, the European Commission presented its proposal for the next budget — known as the Multiannual Financial Framework (MFF) — which amounted to almost 2 trillion euros ($2.3 trillion).