Germany rejects Macron’s call for common EU debt issuance

The government of German Chancellor Friedrich Merz has rejected French President Emmanuel Macron’s call for a common borrowing plan ahead of the upcoming EU leaders’ summit.

In an interview published Tuesday with six European media outlets, Macron urged Europe to launch a new joint debt plan or Eurobonds to increase investment in strategic sectors. He characterized the move as an economic necessity for the continent to keep pace with the US and China.

Berlin dismissed the plan just hours after the interview’s publication. This rejection marks the latest in a series of clashes between Macron and Merz on issues ranging from trade to the strategic approach toward US President Donald Trump.

Speaking Tuesday on the condition of anonymity to discuss the matter candidly, a senior German government official close to the Chancellor stated:

“Given the agenda of the EU leaders’ summit, we believe this plan serves as a distraction from the core issue: our productivity problem. It is true that we need more investment. However, to be honest, this matter falls within the scope of the Multiannual Financial Framework.”

Berlin’s dismissal of Macron’s proposal comes ahead of a meeting of EU leaders on Thursday (February 12) at a castle in Belgium, which will focus specifically on competitiveness.

While the 27 leaders are not expected to sign off on concrete results, they aim to establish key priorities for the next EU leaders’ summit scheduled for March in Brussels.

The official noted that Berlin is pushing for three primary objectives ahead of these summits: the deepening of the single market, the securing of more and faster trade agreements, and the reduction of bureaucracy.

On the issue of competitiveness, Merz is increasingly distancing himself from Macron, who advocates for more protectionist measures and an interventionist industrial policy. Instead, Merz is showing growing alignment with Italian Prime Minister Giorgia Meloni.

The German government has also called for comprehensive reforms to the EU budget.

“With two-thirds of the budget consumed by spending on agriculture and cohesion, we cannot continue as before,” the official said. “Biz hope that the member states currently demanding new financing will also participate in these reform efforts. It is not acceptable for people to demand more money and then fail to implement reforms.”

The official added that “European over-indebtedness comes at a price.”