The remarks at Aachen occurred as Mario Draghi was honored with the 2026 Karlspreis, underscoring a moment of reflection on Europe’s reform path.

He cautions about a hostile international environment and the potential impact of U.S. policy shifts on Europe, urging a clear, prudent course to defend European interests.

In a Charlemagne Prize ceremony in Aachen, German Chancellor, advocating for a leaner EU budget, called for shifts toward investments in competitiveness, defense, and economic sovereignty while opposing joint borrowing by EU members.

Budget discussions center on the 2028-2034 cycle, with the European Commission proposing an inflation-adjusted ~€1.76 trillion and Germany shouldering the largest share.

Armin Laschet, chair of the Karlspreis committee, criticizes Europe’s weak external posture and urges stronger diplomacy and a clear EU stance toward Russia.

He frames Europe’s future in a tighter fiscal environment and argues that spending should prioritize competitiveness and strategic sectors, rather than broad subsidies.

Context for the debate includes the European Parliament’s ongoing work on the 2028-2034 budget and the broader clash between defense needs and traditional policy funding.

The tradition and prestige of the Karlspreis is noted, linking past winners like Adenauer and Churchill to a contemporary debate over Europe’s strategic direction.

The ceremony also featured Greek Prime Minister Kyriakos Mitsotakis, and Draghi’s prior cautions about EU competitiveness are recalled as context.

Draghi is portrayed as a symbol of Europe’s reform agenda, with leaders emphasizing that Europe must remain competitive and less debt-dependent to stand internationally.

The EU budget should be leaner on redistribution and subsidies and heavier on European policy, defense, and competitiveness to strengthen sovereignty.

Merz argues Europe must define and defend its interests, including militarily and economically, against the U.S., China, and Russia.