Proposed next EU budget slashed by 140bil euros

EU leaders are set to convene in Brussels next week to deliberate on plans to reduce the proposed budget for the bloc by 140 billion euros ($155 billion) for the period 2028-2034, according to a draft circulated by Ireland, the current EU presidency. The European Union has been engaged in contentious negotiations over the budget, with Germany spearheading the demand for a reduction from an earlier proposal of nearly two trillion euros.

The 27-nation bloc is deeply divided, with a group comprising Germany, Austria, Denmark, Finland, the Netherlands, and Sweden advocating for substantial cuts, while France, the second-largest European economy and a net contributor, contends that the EU requires adequate resources to address emerging challenges. The EU aims to finalize the budget by the end of the year, fearing that any delay could jeopardize talks during an election year, particularly given the potential impact of eurosceptic victories in France and other countries on future negotiations.

The Ireland draft proposed the largest cuts in funding for international aid, down 17%, while agriculture and regional development funds saw the smallest reductions, down by a mere 3%. Proposed spending on boosting Europe's competitiveness would be cut by 13%, and administrative funding would be reduced by 12%. Despite these cuts, the new budget would still exceed the EU's previous budget of approximately 1.2 trillion euros.