More cuts 'necessary' says German ambassador to EU, ruling out common borrowing, EU-level taxes

German officials are warning that the EU will need deeper spending cuts during its upcoming budget negotiations. Ambassador Thomas Hans Ossowki says Germany rejects new borrowing shared across the bloc and EU-wide taxes. The warning matters because Germany is the EU’s largest economy and biggest net budget contributor.

In practice, Berlin wants a leaner, sustainable “moderniser” budget rather than more joint financing. Ossowki said “more cuts will be definitely necessary,” while ruling out new common borrowing and European-level taxation. He also separates Ukraine support from Germany’s EU-budget contribution, saying upcoming help for Ukraine will sit “outside” that contribution.

Negotiators hope to finish before Christmas, but Ossowki cautioned, “We are not there yet.” Germany’s position could push other governments to identify savings and limit new EU revenue tools. At the same time, Berlin says it will maintain continued support for Ukraine, even as it seeks stricter control of regular EU finances.

Common borrowing means the EU raises money collectively, rather than each country borrowing alone. Member states share responsibility for repayment, giving the EU more spending power but creating shared obligations. It can fund common priorities quickly during crises, but makes EU-wide decisions more consequential.

A well-known example is NextGenerationEU, the recovery programme launched after the pandemic. The European Commission borrowed on financial markets and distributed grants and loans. Repayment is planned through future EU budgets and possible new revenue sources. Borrowing therefore postpones payment rather than removing the cost.

European-level taxes would give the EU direct revenue, such as a levy collected across member states, instead of relying mainly on national contributions. Germany's ambassador, Thomas Hans Ossowski, rejects both new borrowing and European taxation. Germany is the EU's largest economy and net contributor, making its position influential. The article says Ukraine support remains outside Germany's EU-budget contribution.

Germany is the EU’s largest economy and its largest net contributor to the common budget. A net contributor pays more into the EU budget than it receives, making Germany especially important in funding shared European programmes. Its size also gives Berlin significant influence when member states negotiate future spending.

The source gives no exact euro figure, but clearly places Germany ahead of every other member state in net contributions. This position helps explain Ambassador Thomas Hans Ossowki’s call for more cuts and rejection of new shared borrowing or EU-level taxes. Germany is also maintaining support for Ukraine, but upcoming Ukrainian support sits outside Germany’s EU-budget contribution.

That distinction matters because Germany may support Ukraine separately while arguing for a frugal EU budget. Ossowki hopes negotiations finish before Christmas, with a sustainable, modernising budget for the bloc’s future. Germany’s leading financial role means its preferences will strongly shape the compromise, although other governments must agree.

EU budget cuts would likely mean less money or slower rollout for some programmes. Total spending would need to fit within a smaller pool. Governments would then rank priorities, potentially protecting urgent goals while postponing longer-term projects.

The clearest example is Ukraine support. Ambassador Thomas Hans Ossowki said upcoming support for Ukraine is “outside” Germany’s contribution to the EU budget. Therefore, cuts would not automatically determine that separate support. Inside the budget, competing programmes could still face pressure as leaders seek savings.

The negotiations are unsettled: Ossowki said, “We are not there yet,” and that more cuts would definitely be necessary. Germany rejects new common borrowing and European-level taxation. It is also the largest net contributor. This approach could make reductions or delays more likely, although the article names no programmes or amounts. Ossowki hopes for agreement before Christmas and a sustainable, modern budget.

Without joint borrowing or new EU taxes, the EU must use national payments, existing revenues, or spending cuts. Governments can also redirect money from older programmes or delay projects. That means current priorities must fit current income, rather than future debt.

The EU budget already works this way. Member states provide most funding through contributions linked largely to their economies. It also receives customs duties and a small share of VAT-based revenue. Germany is the largest net contributor, so spending changes would affect countries differently.

The article says Germany wants more cuts and rejects common borrowing and EU-level taxation. It also says Ukraine support is outside Germany’s EU budget contribution. Leaders therefore face smaller programmes, higher national payments, or difficult trade-offs. Ossowki hopes for agreement before Christmas.

Support for Ukraine is described as “outside” Germany’s EU-budget contribution because it is treated as a separate commitment, not money Germany pays into the bloc’s common budget. This distinction matters during negotiations: Germany can seek cuts and reject new common borrowing while still backing Ukraine.

For example, Ambassador Thomas Hans Ossowki said upcoming support for Ukraine would sit outside Germany’s EU-budget contribution. This separates two decisions: Germany’s payment for shared EU spending and European countries’ continued help for Ukraine. The article does not specify the exact funding channel or amount.

The current message combines financial restraint with continued support for Ukraine. Germany is Europe’s largest economy and largest net contributor, giving it major influence over budget talks. Ossowki said more cuts were necessary and hoped discussions would finish before Christmas.

The EU’s common budget is a shared pool for agreed priorities, including regional development, agriculture, and research. Countries finance it mainly through contributions reflecting economic size, plus customs duties and part of value-added tax. A country may pay more than it receives directly because spending is distributed by need.

Germany shows this balance. It is Europe’s largest economy and largest net contributor. In other words, it pays more into the budget than it gets back in direct EU spending. Wealthier countries contribute more because they can afford more, while poorer regions receive investment to reduce economic gaps. That supports a stronger single market.

The article says Germany wants more cuts and rejects new common borrowing or EU-level taxes. Ambassador Thomas Hans Ossowki says Ukraine support is outside Germany’s EU-budget contribution. He still echoes Europe’s continued support for Ukraine. Talks must balance national restraint with shared priorities, with hopes for agreement before Christmas and a sustainable “moderniser” budget.