Ireland proposes a $1.81 trillion EU budget through 2034. Sweden calls it ‘wildly unaffordable’
The proposed seven-year spending plan would increase the EU budget by 30%, but major contributors are demanding cuts.
Tensions have escalated over the European Union’s upcoming long-term budget, with Sweden criticizing the proposed plan as "wildly unaffordable." The multiannual financial framework (MFF) is valued at around 1.2% of the 27 countries' combined gross national income. Negotiations are taking place as the EU tackles outside pressures, such as supporting Ukraine against Russia and competing in a high-energy price environment with trade tensions against the US and China.
The current budget is set to last until 2034, and Ireland, currently holding the EU presidency, proposed an increase of 30% to 1.62 trillion euros ($1.81 trillion). However, Sweden, one of the eight countries contributing more than they receive, insists on further cuts, calling the proposed budget "wildly unaffordable." The Swedish EU Affairs Minister, Jessica Rosencrantz, believes the budget increase would mean a 60% rise in the Swedish contribution.
Germany's Chancellor Friedrich Merz welcomed Ireland's efforts but emphasized the need for agreement on affordable financing, stating that all countries must contribute to the necessary adjustments. Emerging from the negotiations is the challenge of finding new sources of revenue or reducing spending in areas like defense, competitiveness, and the EU's goals in the face of financial constraints.
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