EU summit: Merz calls for cuts to ‘too high’ budget

German Chancellor Friedrich Merz said the European Commission’s long-term budget proposal for 2028 to 2034 was “far too high” and called for a new proposal.

https://p.dw.com/p/5Few6

Photo of Friedrich Merz
Friedrich Merz said the proposed figures to almost €2 trillion had to be reducedImage: Michael Kappeler/dpa/picture alliance

Skip next section What you need to know

What you need to know

  • Merz calls for new budget proposal as talks kick off on EU finances
  • EU leaders have gathered in Brussels to discuss three main topics: Ukraine, EU long-term budget and global economic challenges
  • Leaders last evening agreed to extend sanctions on Russia by 12 months

Here is a roundup of the major news and analysis from the June 18 and 19 European Union summit.

Tired of missing our real-time updates? Click here to add us as a Preferred Source on Google. Then tap the “Star” or “Preferred” to keep DW News at the top of your feed.

Skip next section Germany’s Merz objects to bigger EU budgetPublished 06/19/2026Published June 19, 2026last updated 06/19/2026last updated June 19, 2026

Germany’s Merz objects to bigger EU budget

Germany's Chancellor Friedrich Merz talks to journalists as he arrives for the EU summit in Brussels, Friday, June 19, 2026
Merz attended the EU meeting after attending the G7 summit in FranceImage: Marius Burgelman/AP Photo/picture alliance

German Chancellor Friedrich Merz said he is in favor of a smaller proposal for the European Union’s next long-term budget for the period from 2028 until 2034.

“The proposal on the table is far too high. The figures need to be reduced,” Merz said before talks with other EU leaders on Friday. “A new proposal must be put forward,” he said.

The European Commission has proposed a budget of nearly €2 trillion ($2.29 trillion) or 1.26% of the EU’s gross national income on average between 2028 and 2034.

But negotiations are tricky and often meet resistance from leaders who prioritize their own key interests.

Currently, the European Commission is debating a 2% reduction in the proposed budget. 

What is the EU’s long-term budget?

The EU’s long-term budget is also sometimes referred to as the multiannual financial framework (MFF), as it is called in the EU treaty. It sets limits on how much money the EU can invest over a period of at least five years in different policy areas. Recent long-term budgets have been set for seven years.

One of the reasons the EU has a long-term budget is to make it easier for the beneficiaries of the programs that the EU wants to fund to plan and increase their efficiency.

https://p.dw.com/p/5FhP8Skip next section Welcome back to our coveragePublished 06/19/2026Published June 19, 2026last updated 06/19/2026last updated June 19, 2026

Welcome back to our coverage

Wesley Dockery Editor

Welcome back to our coverage on June 19, with EU leaders set to discuss a contentious topic — the EU budget.
 

https://p.dw.com/p/5FhJlSkip next section Pausing coverage of EU summit06/19/2026June 19, 2026

Pausing coverage of EU summit

We’ll be pausing our coverage of the EU leaders’ summit in Brussels until the bloc’s top politicians emerge from their hotel rooms on Friday morning. 

https://p.dw.com/p/5FgbhSkip next section Leaders discuss economic challenges over dinner06/19/2026June 19, 2026

Leaders discuss economic challenges over dinner

EU leaders met late into the night Thursday and used dinner to discuss some of the global economic challenges, according to an official who briefed reporters.

Leaders agreed that a European response was required to address global macroeconomic imbalances and that this would be based on European unity and dialogue with the bloc’s main economic partners.

Leaders discussed the One Europe One Market agenda, which is a roadmap that seeks to advance European competitiveness.

It was determined that the EU needs to continue trade diversification, derisking, reduction of dependencies and reinforcing strategic autonomy.

https://p.dw.com/p/5FgRnSkip next section Zelenskyy looking for fuel and missiles should war continue into winter06/19/2026June 19, 2026

Zelenskyy looking for fuel and missiles should war continue into winter

Ukrainian President Volodymyr Zelenskyy said hundreds more missiles would be needed if the war with Russia continued into another winter.

The Ukrainian leader said that while he wants diplomacy to bring an end to fighting, if it continued, then at least 300 missiles would be needed.

“Of course, we want to end this war before winter —  through diplomacy and through pressure on Russia,” Zelenskyy said on Telegram.

“But we understand who we are dealing with. Putin is a war. So if the war continues, we will need a winter aid package. This should include an energy package — gas, diesel and the necessary energy equipment – ​​and a missile package for at least 300 missiles for the winter,” Zelenskyy said.

He added that this is what was said when he addressed the European Council summit in Brussels.

https://p.dw.com/p/5FgRRSkip next section READ: Israel says it’s cutting ties to EU’s Kaja Kallas06/19/2026June 19, 2026

READ: Israel says it’s cutting ties to EU’s Kaja Kallas

Mark Hallam

Mexico's Foreign Affairs Minister Roberto Velasco Alvarez, and the High Representative for Foreign Affairs, Security Policy and Vice-President of the European Commission, Kaja Kallas
The report, citing unnamed diplomatic sources, only emerged several weeks after Kaja Kallas visited Mexico for talks (FILE: May 22, 2026)Image: Luis Barron/Eyepix Group/Sipa USA/picture alliance

Israeli Foreign Minister Gideon Saar said he was cutting ties to the EU’s foreign policy representative Kaja Kallas.

Saar has challenged her to address a Euractiv media report claiming that she compared Israel’s treatment of Palestinians in the West Bank and Gaza to apartheid South Africa in a visit to Mexico last month. 

EU-Israel relations have been strained amid the conflicts that followed the October 7, 2023, Hamas-led terror attacks.

Keep reading here to find out what Kallas had to say in response.

 

https://p.dw.com/p/5FgQoSkip next section Zelenskyy urges EU leaders to fast-track Ukraine’s membership06/19/2026June 19, 2026

Zelenskyy urges EU leaders to fast-track Ukraine’s membership

Close-up of Zelenskyy with an out-of-foucs EU flag in the background
Zelenskyy traveled to Brussels to meet with EU and NATO leadersImage: Michael Kappeler/dpa/picture alliance

Addressing an EU summit, Ukrainian President Volodymyr Zelenskyy said the future of Europe was being decided with the defense of Ukraine.

He also stressed that the best guarantee for the future would be to grant Kyiv fast-track EU membership.

“The future of Europe — free, united, and in peace — is being decided in our defense. That shows how unique our situation is,” Zelenskyy said in excerpts of the address posted on X.

“The most important such step could be a fast-track path for Ukraine to join the EU,” he added.

This week, the European Council agreed to open the first cluster of chapters in the accession negotiations with Ukraine. The goal now, according to an EU official, is to open all the other clusters as soon as possible. 

The official said all the EU’s efforts are aimed at strengthening Ukraine and putting pressure on Russia in view of future peace negotiations. 

Zelenskyy, however, stressed that Europe’s security depended on securing funding for Ukraine’s military: “We need to provide long-term security guarantees for Europe, and that means long-term financial guarantees for the Ukrainian army.”

He added that the EU and the “coalition of willing” countries supporting it could develop the financial instruments to ensure that funding.

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video

 

https://p.dw.com/p/5FgQdSkip next section Luxembourg’s Frieden calls for bigger EU role in Ukraine talks06/18/2026June 18, 2026

Luxembourg’s Frieden calls for bigger EU role in Ukraine talks

On the sidelines of the EU summit in Brussels, Luxembourg‘s Prime Minister Luc Frieden called for a bigger EU role in Ukraine talks.

“I’ve always said we cannot leave it to the Americans to speak to Russia about Ukraine and Europe,” he told reporters ahead of the summit.

But before reaching out to Russia, the EU needs to establish a common position, Frieden stressed, namely, “We stand on the side of Ukraine, we defend the fundamental principles of international law and the principles of the United Nations charter, that was obviously violated.”

https://p.dw.com/p/5FgQZSkip next section Merz calls for strengthening Europe’s defense capabilities06/18/2026June 18, 2026

Merz calls for strengthening Europe’s defense capabilities

At the European Union summit in Brussels, German Chancellor Friedrich Merz acknowledged the new US security strategy, which includes a review of troop deployments worldwide, including in Europe and Germany.

Consequently, Germany’s and Europe’s defense capabilities must be strengthened, he stressed.

There is already good coordination within the EU and among NATO partners, including Norway and the UK, in this regard, Merz stated, adding that this coordination serves to reinforce the European pillar of NATO.

https://p.dw.com/p/5FgQXSkip next section EU to renew Russia sanctions for 12 months06/18/2026June 18, 2026

EU to renew Russia sanctions for 12 months

European Union leaders have agreed to renew sanctions against Russia over its ongoing full-scale invasion of Ukraine.

A spokesperson for European Council President Antonio Costa said the measures would be renewed for another 12 months.

The bloc had been planning further restrictions on various industrial sectors, including on the banking industry and cryptocurrency assets, and on Russia’s so-called “shadow fleet” of ships accused of helping circumvent sanctions on things like oil sales. 

Thursday’s ‌decision marked the first time such ​sanctions have been ​renewed for ‌a year. Previously, they had been renewed every ⁠six ​months.

https://p.dw.com/p/5FgQ7Skip next section Bulgaria to veto new EU sanctions package against Russia, PM says06/18/2026June 18, 2026

Bulgaria to veto new EU sanctions package against Russia, PM says

Bulgaria‘s Prime Minister Rumen Radev said his country will veto the latest European Union package of sanctions against Russia because it may negatively impact Bulgaria’s economy. The Bulgarian government is also vetoing over sanctions imposed on a Russian bishop.

“There is a significant risk to the operation of Lukoil,” Radev, a pro-Russian euroskeptic who won a parliamentary election in April, told reporters. “We want Lukoil to be excluded from the list.”

Russian Lukoil is one of the largest motor fuel retailers in Bulgaria and runs the country’s sole refinery in Burgas.

However, Radev said that Bulgaria would not obstruct the EU’s common decisions on Ukraine. “We will support the process of negotiations for Ukraine’s accession to the EU,” he said.

https://p.dw.com/p/5Fg93Skip next section Some EU leaders are warning against talks with Russia06/18/2026June 18, 2026

Some EU leaders are warning against talks with Russia

Several leaders who arrived at the EU summit in Brussels said there was no point in rushing into talks with Russia.

These remarks were made after an EU official announced on Wednesday that the office of European Council President Antonio Costa had had “brief contacts at diplomatic level” with the Kremlin.

“First of all, there has to be someone on the other side willing for peace,” Latvian Prime Minister Andris Kulbergs said. “Unfortunately no one wants peace on that side … there is ​no point for contact if the other party (Russia) doesn’t want (peace).”

“It is much better ​to step ‌in if we see some positive signals from Russia, showing that Russia is willing to start the peace negotiations, or they are willing for a ceasefire,” Lithuania‘s President Gitanas Nauseda told reporters. “So far ‌I do not see any positive signals from Russia, so my question is what we ‌want ​to achieve.”

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video

Dutch Prime Minister Rob Jetten also said that Russia was not showing any willingness to negotiate, adding that he did not believe peace talks could start soon.

“We do not have that impression at all from the Netherlands. We see that the Russians have not shown any serious interest recently,” he said.

Meanwhile, Austrian Chancellor Christian Stocker said he wanted to keep the lines of communication open, no matter the level. However, even he was skeptical about Moscow’s willingness to discuss peace.

“I do not have the impression that Russia, and President Putin in particular, is coming to the negotiating table to negotiate a peace solution,” Stocker said.

Earlier this week, Italian Prime Minister Giorgia Meloni proposed the idea of a single EU envoy to handle negotiations with Russia regarding Ukraine.

https://p.dw.com/p/5Fg4YSkip next section Zelenskyy says he discussed Ukraine’s accession with EU leaders06/18/2026June 18, 2026

Zelenskyy says he discussed Ukraine’s accession with EU leaders

Ukrainian President Volodymyr Zelenskyy said that he discussed further steps on Ukraine’s path toward accession to the European Union with European Council President Antonio Costa and European Commission President Ursula von der Leyen, and that they coordinated their positions.

“It is important to open the remaining five negotiating clusters in the near future. We also expect to receive the first tranche from the EU financial support package soon in order to strengthen our defense,” Zelenskyy wrote on X.

The leaders also discussed defense support for Ukraine, particularly strengthening air defense and protection against Russian ballistic missiles, according to the Ukrainian president.

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video


https://p.dw.com/p/5Fg5PSkip next section Von der Leyen: Tide is clearly turning for Ukraine06/18/2026June 18, 2026

Von der Leyen: Tide is clearly turning for Ukraine

European Council President Antonio Costa and European Commission President Ursula von der Leyen welcomed Ukrainian President Volodymyr Zelenskyy at the EU summit.

“It’s been a historic week for Ukraine. On Monday, we opened formally the negotiations of the first cluster. It’s a very important step towards enlargement of the European Union and full accession of Ukraine to the European Union,” Costa said.

Von der Leyen also congratulated Ukraine on opening the first cluster of negotiations. “You deserve it because you were working so hard to move forward to do the necessary reforms. We hope that during the summit we can open more clusters,” she added.

“I have the impression that the tide is turning. We see that Ukraine is holding the line, even partially regaining the territory, and that Ukraine has a very strong moment,” von der Leyen said.

https://p.dw.com/p/5FfycSkip next section EU leaders to discuss trade imbalance with China06/18/2026June 18, 2026

EU leaders to discuss trade imbalance with China

At their summit in Brussels, European Union leaders are expected to discuss new, tougher measures needed to curb the bloc’s growing trade deficit with China and its reliance on rare earths and other critical supplies from the country.

According to Reuters, EU diplomats say there is a gradual convergence of views among the 27 EU members that the goods trade deficit with China is problematic.

The deficit now amounts to approximately €1 billion ($1.15 billion) per day. The situation is more critical given that transatlantic tariffs are diminishing access to the US market.

In 2025, China’s goods trade surplus with the EU reached €360.6 billion, marking a 15% increase from 2024.

Additionally, it expanded by 10% in the first four months of this year, driven by increased sales to the EU and reduced imports by Chinese firms.

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video


https://p.dw.com/p/5Ff3MShow more posts

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *

About the Author

Easy WordPress Websites Builder: Versatile Demos for Blogs, News, eCommerce and More – One-Click Import, No Coding! 1000+ Ready-made Templates for Stunning Newspaper, Magazine, Blog, and Publishing Websites.

BlockSpare — News, Magazine and Blog Addons for (Gutenberg) Block Editor

Search the Archives

Access over the years of investigative journalism and breaking reports