Germany says Costa losing touch ‘with reality’ on EU budget

BRUSSELS — Germany criticized European Council President António Costa on Tuesday over the fraught negotiations on the EU’s next seven-year budget.

Speaking on his way into a meeting of Europe ministers in Brussels, Germany’s Gunther Krichbaum said Costa’s recent interview with POLITICO was “not very helpful” and urged “more realism” on the budget.

In the interview, conducted in Dublin at the end of his budget tour of EU capitals, Costa said that agreeing to new EU-wide taxes, also known as own resources, is key to preventing major budget cuts and keeping national contributions to Brussels under control. He added that cuts to the Commission’s near-€2 trillion budget proposal risk running into opposition from many national governments.

However, Germany and allies from Northern Europe — whose contributions to the budget exceed their EU payouts — are pushing in the opposite direction, insisting that the EU slash its cashpot by hundreds of billions of euros. They argue that introducing new EU taxes is not an alternative to major cuts.

“One has to wonder whether Mr. Costa has completely lost touch with reality by now,” Krichbaum told reporters.

He added that “national budgets are under enormous pressure … and everyone knows that the sky isn’t the limit.”

EU governments are lobbying the Irish presidency of the Council of the EU — which is steering the budget talks — to reflect their preferences in a new budget negotiating document, also known as a negobox, that is set to be presented in early October. 

Ireland has urged ministers to outline on Tuesday where they are ready to compromise on the most sensitive issues in the negotiations, including spending cuts and own resources.

Costa will take over the negotiations after an October European Council, when EU leaders will react to Ireland’s proposal. Over the past month, Costa toured 25 EU capitals to sound out leaders on the most difficult topics in the negotiations.