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German conservative leader: Without Mercosur, Berlin can’t pay more into EU coffers

BERLIN — A high-ranking German lawmaker belonging to Chancellor Friedrich Merz’s conservative bloc issued a simple warning to countries holding up the EU-Mercosur trade agreement: Without such deals, Germany won’t be able to pay more into EU coffers.

“Germany is an export nation, from which, incidentally, all other EU countries also benefit,” Sepp Müller, deputy chairman of Merz’s conservative parliamentary group in the Bundestag, said on Wednesday when asked about the leverage Germany has in ongoing negotiations over the trade deal with the Latin American bloc.

“If Germany does not return to being a strong export nation, then we will not be able, economically and financially, to bear any further additional burdens for an increasing multi-year financial framework,” he added, referring to the European Commission’s €2 trillion 2028-2034 budget proposal that is now under discussion.

“Now Europe must decide: Does it want to put the German economy back on the path to growth and thus support and grow the largest net contributor to the European coffers?” he said.

Chancellor Friedrich Merz, speaking in the German Bundestag ahead of an EU summit, exhibited frustration over persisting disagreements that are holding up the Mercosur trade agreement.

The agreement, in the works for over 25 years, is within sight of the finish line, but France and Italy are calling for a delay to finalize additional safeguards to protect European farmers from heightened South American competition. Only if they come round will European Commission President Ursula von der Leyen be able to fly to Brazil on Saturday, the day after the EU summit, to sign the deal.

“The European Union’s ability to act is also measured by whether, after 26 years of negotiations, we are finally in a position to conclude this trade agreement and thus also to swiftly move forward with the trade agreements negotiated in Mexico and Indonesia,” Merz said.

“If in the situation we find ourselves in today, in the times we live in today, we are still haggling over the details of major trade agreements that we as Europeans want to conclude with large economic areas around the world, then those who are doing so still do not properly understand the priorities we are setting now.”

Asked about Müller’s comments, the chancellor’s spokesperson, Stefan Kornelius, said: “The government’s policy is to implement Mercosur. The budget is a different matter. A budget only works if we have growth.”

Germany contributes around €47 billion to the EU budget annually, corresponding to around 23.6 percent of its funding and over 1 percent of Germany’s gross domestic product. If Germany maintains roughly its current share of the budget, its annual contribution would rise to around €67.3 billion in the next fiscal cycle.

Hans von der Burchard contributed to this report.

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Writers at Lord’s Press come from a range of professional backgrounds, including history, diplomacy, heraldry, and public administration. Many publish anonymously or under initials—a practice that reflects the publication’s long-standing emphasis on discretion and editorial objectivity. While they bring expertise in European nobility, protocol, and archival research, their role is not to opine, but to document. Their focus remains on accuracy, historical integrity, and the preservation of events and individuals whose significance might otherwise go unrecorded.

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