Vertically against its central bank is Germany (Bundesbank) Creating a Crisis Mechanism from 2028 as part of its new Community budget EU (Multiannual budgetary framework, MFF).
The Bundesbank report for September 2025, which was released yesterday (9.10.25) explicitly states how “Such a preventive means of dealing with crisis seems inconsistent given the existing architectural crisis”adding that the ‘Commission wants the
European Union to provide financial assistance to Member States more easily in the event of a crisis than before. ” “However”, Refers shortly after Bundesbank, “The European Stability Mechanism (ESM) already exists in the euro area. Consequently, it does not seem to be necessary to add additional prediction to deal with crisis in the EU budget. “
Other words, the Bundesbank It clearly supports the elimination of this tool (crisis mechanism) from the upcoming perennial fiscal framework and proposes to any extraordinary financial assistance to the existing ESM, which was accompanied by austerity measures.
This Bundesbank “bomb” comes a few days after the Commission’s plans for creation were known of a new ‘recovery fund’ In the form of the “crisis mechanism” within the new perennial fiscal framework (Community budget 2028 – 2034).
What is the “crisis mechanism”? It is part of the proposed new multi -year framework for the period 2028 – 2034, which would be mobilized in the event of a crisis in the EU.
The “dowry” provided by the Commission’s draft for this “mechanism” is up to 395 billion euros or 20% of the total perennial fiscal framework of 2028 – 2034 (2 trillion euros), which would even be derived through a common lending, that is, by issuing bonds by the Commission.
The Commission’s proposal, which was made public in mid -July 2025, does not mention what kind of crisis, the funds of this “mechanism” could be used.
However, at the Brussels table the scenario of its mobilization has fallen openly – and – if it is necessary to prevent the impact of an economic crisis eg in the event of an increase in tensions or even EU warfare with Russia.
So by saying Bundesbank “no” in the new “crisis mechanism”, indirectly proposes the reduction of the Community budget by a corresponding rate or to be more precise!
Why this? According to the same report by the German Central Bank, from the 2 trillion. Euro of the 2028-2034 multi-year plan only 1,763m. Euro could fall directly to the economy, as € 150 billion will direct debt service for the “Next Generation EU” program that ran during the pandemic period…
Consequently, if the “crisis mechanism” was eliminated by the Germans’ order and although this tool is not part of the “regular budget” but it would only be activated in an extraordinary case, the funds of the coming Community budget would only fall to … 1.368 trillion. euro.