Germany is the largest net contributor to the EU, with a total of €17 billion, according to a study
Germany remains, according to a study, by far the largest net contributor to the European Union (EU). Last year, Europe's largest economy paid 17.4 billion euros more into the EU pot than it received, as shown by an investigation by the employer-friendly Institute of the German Economy (IW Cologne).
"The German net contribution is almost twice as high as the contribution of the French, who contribute the second most," said study author and IW economist Samina Sultan to the news agency Reuters. The net position of the western neighbor was thus just under nine billion euros. "The biggest beneficiary, however, is Poland," said Sultan. "In 2023, the country received around eight billion euros more than it contributed." Romania follows with 6.0 billion and Hungary with 4.6 billion euros.
Due to the weak economic situation, Germany's net position has decreased compared to 2022, when it was 19.7 billion euros. "And for the current year, the contribution is likely to shrink again, as there is no sign of an economic recovery," said the IW expert. "While the German contribution is shrinking, the net contribution of the Spanish and Portuguese is increasing, as the economy in these countries is growing - the financial burdens are shifting."
Currently, there is a discussion about the accession of Ukraine and other states due to the Russian attack war. "Our study and past results, however, show that such an expansion would also require reforms on the EU side," said IW economist Sultan. In addition to reforms in the EU's decision-making processes, the EU budget would also have to be prepared for this." The study shows that funds from the cohesion policy are often called up late. Here, a simplification of the awarding rules seems necessary. "Moreover, these funds should be concentrated again on the poorest member states in the event of an expansion," said the IW expert.
Other EU countries may need to implement reforms and adjust their budgets to accommodate the potential increase in funds due to the possible expansion of the EU, as suggested by the IW economist. Germany, despite being a significant net contributor, could potentially see a reduction in its contribution if the economic situation continues to deteriorate.
