German Chancellor Friedrich Merz said the European Union must "make do with the money it has," rejecting calls for new revenue streams as member states begin negotiating the bloc’s next seven-year budget. Speaking at a news conference after talks in London, Merz ruled out an EU-wide corporate tax, arguing the bloc lacks the legal authority to levy such charges. He also dismissed the European Commission’s suggestion of financing a proposed €400 billion crisis fund through joint borrowing, saying shared debt should remain an exception rather than the norm. Merz warned that discussions over the Commission’s €1.816 trillion draft budget for 2028-34 could become the toughest in decades, underscoring Germany’s determination to curb spending growth. He added that his government’s first priority is to lift Europe’s largest economy out of recession, signalling a focus on domestic recovery alongside tighter EU fiscal discipline.