Ireland’s presidency has proposed cutting €141 billion from the European Commission’s long-term spending plans, taking the planned 2028–2034 financial framework to around €1.6 trillion in constant prices.
The reduction is intended to address the concerns of net contributor countries known as “the frugals”. Yet the revised budget would remain approximately 30 per cent larger than the current seven-year framework.
Germany, Sweden, the Netherlands and other governments have argued that further restraint is necessary. Sweden is among the countries opposing the EU budget proposal.
The dispute comes as Russia’s invasion of Ukraine has increased defence requirements. Germany and other major net contributors also face domestic fiscal constraints, rising borrowing costs and pressure to increase national defence spending.
Ukraine and several Western Balkan countries are pursuing accession to the EU, adding another important demand on the bloc’s long-term financial arrangements.
Under the Irish proposal, agricultural and regional development allocations would fall by approximately three per cent. Funding for competitiveness and security would be reduced by around 13 per cent, while external action and development cooperation would face cuts of approximately 17 per cent.
The plan also envisages approximately €55 billion in additional annual financing from new or revised EU revenue sources. These would include customs revenues, emissions-related income and corporate contributions.
European Council leaders are scheduled to meet on 15–16 October. The European Parliament’s consent will be required before the final financial framework can enter into force.
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