Proposed next EU budget slashed by 140bil euros

EU leaders convene in Brussels next week to deliberate on the proposed 2028-2034 budget, aiming to finalize a deal by year-end. Ireland, currently presiding over the EU, proposed slashing the next budget by 140 billion euros, according to a draft circulating among member states. This move comes as European Union countries grapple over the size of the forthcoming budget, with Germany pushing for reductions to the earlier proposal of nearly 2 trillion euros.

The 27-nation bloc is deeply divided, with Germany, Austria, Denmark, Finland, the Netherlands, and Sweden seeking substantial cuts, while France, the second-largest European economy and net contributor, emphasizes the need to address the bloc's mounting challenges. The EU aims to reach an agreement before the year-end, fearing that any delay would complicate talks during an election year fraught with potential eurosceptic victories.

Ireland's draft recommended significant cuts in international aid, down by 17%, while agriculture and regional development funds saw only minor reductions. Proposed spending on economic competitiveness and EU administration would also be trimmed by 13% and 12%, respectively. Despite these cuts, the new budget would still exceed the EU's last proposed budget of around 1.2 trillion euros.