France, Germany lock horns over long-term EU budget
Daggers have been drawn over the European Union's next seven-year budget, with Germany and France at loggerheads over whether Brussels should make deep cuts in a battle increasingly expected to overshoot the end of the year.
France and Germany are locked in a dispute over the European Union's next seven-year budget, with the two nations at odds over whether Brussels should make deep cuts. The EU aims to finalize a deal by Christmas, fearing that any delay would push negotiations into a challenging election year, particularly given the potential eurosceptic victories in France and other countries.
The proposed budget for 2028-2034 is nearly 2 trillion euros, compared to the 2021-2027 budget worth around 1.2 trillion euros. Germany, along with Austria, Denmark, Finland, the Netherlands, and Sweden, seeks significant cuts, while France, the second-largest economy and a net contributor, argues that the continent requires a stronger budget to address mounting challenges.
French President Emmanuel Macron has criticized demands for substantial cuts, emphasizing the need for an ambitious European budget to support EU priorities, including defense. Ireland, currently holding the rotating EU presidency, will present a revised budget proposal on Saturday, hoping to narrow the gap between the two sides.
However, the risk of missing the December deadline has become more apparent, especially after Spain called for a snap election. A senior European diplomat dismissed speculation about alternatives, stating that the EU recognizes the urgency of addressing the issue. The budget proposal will set the stage for a clash at a Brussels summit, not only over cuts but also with other demands.
Seventeen countries from southern, central, and eastern Europe form the "Friends of Cohesion," advocating for increased funding for agriculture and regional development. The "frugals," led by Germany, want substantial cuts and maintain their rebates, weakening the budget. France and Germany have clashed over budget issues, with France struggling economically and far-right leader Marine Le Pen advocating for slashing the French contribution to address debt concerns.
The European Commission proposes new revenue sources, such as taxes on large companies, electronic waste, and tobacco, while the European Parliament seeks to tax digital giants and online gambling. It remains to be seen whether Ireland will introduce additional revenue ideas, as many nations oppose taxes on big companies and a digital levy.
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