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Germany rejects Macron proposal for new EU joint debt plan

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Germany rejects Macron proposal for new EU joint debt plan ahead of an EU summit, citing productivity concerns and budget framework priorities

Germany rejects Macron proposal for new EU joint debt plan ahead of an informal European Union leaders’ summit scheduled for Thursday at Alden-Biesen Castle in Limburg, focused on competitiveness.

The German government led by Chancellor Friedrich Merz dismissed French President Emmanuel Macron’s call to launch a new common European borrowing scheme. Macron proposed a system modeled on eurobonds to finance investments in artificial intelligence, defense and green transition projects, aiming to help Europe compete with the United States and China.

According to a German government official close to the chancellor and quoted anonymously by Politico, the Germany rejects Macron proposal for new EU joint debt plan position reflects concern that the initiative could shift attention away from what Berlin considers the core issue: Europe’s productivity gap.

The same source acknowledged that additional investment is necessary but said it should be addressed within negotiations on the EU’s next Multiannual Financial Framework, covering the 2028–2034 budget cycle. German officials argue that the debate on financing tools should remain tied to that process.

The Germany rejects Macron proposal for new EU joint debt plan dispute comes at a time of growing political distance between Macron and Merz. The two leaders have diverged in recent months on trade, industrial policy and relations with U.S. President Donald Trump.

On competitiveness policy, Politico notes that the German chancellor is increasingly aligned with liberal economic positions, emphasizing the single market and new trade agreements. In contrast, the French government is pushing for stronger public intervention and more protective economic measures.

Ahead of the summit, Berlin is focusing on three priorities: strengthening the single market, rapidly finalizing new trade deals and cutting bureaucracy. According to European sources, this free-market approach has brought Merz closer to the positions of Italian Prime Minister Giorgia Meloni than to those of Macron, reinforcing the broader context behind why Germany rejects Macron proposal for new EU joint debt plan.

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