BERLIN/BRUSSELS/PARIS (our own report) – The power struggle over the next EU budget is intensifying. While the International Monetary Fund (IMF) warns of rising global public debt, the Member States are arguing over the allocation of the European Union’s trillion-euro budget. Berlin has called for cuts in the order of several hundred billion euros and is simultaneously pressing for spending on defence and business competitiveness to be prioritised. The German stance is opposed by a number of countries that are keen to retain wide-ranging agricultural subsidies and cohesion funds. Even within the net-contributor bloc of so-called ‘frugal’ states, which campaign for scaling down the EU budget, there are considerable differences over the planned cuts. The rising costs of servicing debts built up during the corona pandemic are causing yet more strains and conflicts. Requests from several Member States to extend repayment periods could offer a political lever for Berlin, which has so far strictly rejected debt rescheduling. Berlin wants to swiftly wrap up the budget negotiations in Brussels, while above all in France political pressure is mounting on the government not to accept deep spending cuts in view of the upcoming presidential election. Read more