Von der Leyen warns against EU budget cuts
Commission president dismissed Germany's calls for big savings, arguing that they would undermine EU-wide priorities.
European Commission President Ursula von der Leyen cautioned against budget cuts for the EU's upcoming seven-year financial plan during a speech in Strasbourg. She emphasized that reducing the budget would jeopardize important common goals like competitiveness and energy self-sufficiency. Von der Leyen warned that such cuts could deeply impact critical priorities agreed upon by all EU members.
This caution comes as the Irish presidency of the Council of the EU prepares to present a new budget negotiating document with revised figures. Previously, von der Leyen praised the Commission's budget proposal for 2028-2034 as the most ambitious ever, but her tone became more cautious as negotiations gained momentum. She revealed that the proposed budget represents a modest 1.26% of the EU's gross national income, a slight increase from the existing budget.
The EU governments are racing to finalize an agreement by year-end, with the outcome potentially affected by parliamentary elections in France, Italy, and Poland in 2027. Despite the pressing deadline, significant disagreements persist among EU leaders regarding the budget's size. While Germany and Northern European allies have pushed for substantial cuts, including €100 billion or more according to some officials, 17 Southern and Eastern European countries, including Italy and Romania, have urged the retention of essential subsidies and regional aid.
German Chancellor Friedrich Merz issued a warning, suggesting that the absence of a new financial framework would be financially advantageous for Germany but detrimental to the EU's capacity to act.
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