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 it.
Germany contributed more to the EU budget in the past year than it received, according to an analysis by the Institute of the German Economy (IW) of previously published data from the EU Commission. In 2023, Germany paid around 17.4 billion euros more into the common budget 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. Romania (6.0 billion euros) and Hungary (4.6 billion euros) follow.
In terms of net payments per capita, Ireland is at the top with 236 euros per head. In Germany, the payments amounted to 206 euros per capita. However, in relation to GDP, Germany remains the largest net contributor, according to the authors. GDP 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, there were funds from the EU's Corona Recovery Fund totalling 66.1 billion euros, of which 64.6 billion euros went to the member states. Germany, as the largest net contributor to the Union, provides almost a quarter of the funds. The German government generally emphasizes that Germany also benefits more from the EU 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 again in 2024," the authors write.
The EU budget relies heavily on contributions from its member nations, with Germany being one of the largest contributors. Despite being the largest net contributor to the EU, Germany also derives significant benefits from being part of the EU's internal market.
