Germany weakens but remains the EU's largest net contributor
The EU budget is funded by contributions from member countries. Most of this comes from Germany, but the amount has decreased. In fact, the largest economy in the EU also benefits from this.
Germany contributed more to the EU budget last year than it received, according to an analysis by the Institute of the German Economy (IW) of previously published data from the EU Commission. Germany paid around 17.4 billion euros more into the common budget of the states than it received, making it the largest net contributor to the EU (2022: 19.7 billion euros).
France is in second place, with a net contribution of around 9 billion euros. Italy is in third place with a net contribution of around 4.5 billion euros. The largest net recipient in 2023, as in the previous year, was Poland with 8.2 billion euros, followed by Romania (6.0 billion euros) and Hungary (4.6 billion euros).
In terms of net payments per capita, Ireland is at the top with 236 euros per person. In Germany, the payments amounted to 206 euros per capita. However, in relation to Gross National Income (GNI), Germany remains the largest net contributor, according to the authors. GNI refers to the economic performance generated by all residents.
The budget of the European Union (EU) amounted to a total of 173.1 billion euros in 2023, according to the figures. Of this, 143.4 billion euros went to the member states. In addition, funds from the EU's Corona Recovery Fund totaling 66.1 billion euros were allocated, with 64.6 billion euros going to the member states. Germany, as the largest net contributor to the Union, provides almost a quarter of these funds. The German government emphasizes that Germany also benefits more from the EU's internal market than any other European economy.
Experts cite the weak economic situation in Germany as the reason for the decrease in its net contribution to the EU. "Given that an economic recovery in Germany is not expected in the current year (...), it can be assumed that Germany's net contribution will decrease further in 2024," the authors write.
The Institute's analysis revealed that Germany had a net contribution of 19.7 billion euros to the EU budget in 2022, making it the EU Commission's largest net contributor. The Commission plays a crucial role in managing and distributing these funds among the member states.
