EU leaders face budget showdown as Germany leads revolt over spending plans
An Irish compromise proposal for the EU’s long-term budget has drawn fire from the net-paying countries over its size and its focus on cutting ‘modern’ priorities. The Commission and MEPs have countered, warning of the risks of a less ambitious, more rigid budget.
European Union leaders are facing a contentious budget negotiation this week, with a coalition of net contributors led by Germany rejecting a compromise proposal as inadequate. The Irish presidency of the EU Council proposed a €141 billion cut, reducing the budget to €1.622 trillion in 2025 prices for the 2028-2034 period. However, Germany and its allies argue the cuts are insufficient and the proposal lacks ambition.
They also object to the distribution of cuts, particularly in areas like defence, research, and new technologies, which they believe are being disproportionately affected. Finland's Prime Minister Petteri Orpo stated that defence, research, and new technologies need to be strengthened, and savings should be made evenly across the budget.
Meanwhile, traditional policies like agriculture and cohesion are largely spared, with only a 3% reduction. The Irish proposal heavily targets programs favored by the "frugals," or "modernisers," who prefer to call themselves such. The frugals' own priorities have been cut before; in June, the Cypriot presidency proposed cuts to the European Competitiveness Fund and Global Europe programme by nearly 4%.
With the budget expected to be discussed at the European Council summit on Thursday and Friday, EU leaders are urged to advance the discussion and avoid an underfunded Europe vulnerable to future crises.
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