Ireland's presidency of the EU has proposed a €1.6 trillion budget for 2028-2034, below the European Commission's €2 trillion plan. The figure sets up contentious talks among the 27 member states, which are divided over spending limits and priorities.
The Irish presidency of the European Union proposed reducing the bloc's 2028-2034 budget to €1.6 trillion in a Saturday announcement. The proposal sets the stage for contentious negotiations among the EU's 27 member states.
Although the Irish presidency described the cut as 8%, the stated total is 20% below the Commission's original proposal of €2 trillion, presented in July 2025. The Commission's plan aimed to redirect more resources towards technological competitiveness, security and defence.
Cyprus, which held the rotating presidency in June, had proposed a smaller 2% reduction. That compromise sought to moderate planned increases in defence and competitiveness spending while providing additional support for agriculture and regional development.
However, the talks have exposed divisions between countries seeking tighter spending limits and those demanding greater investment in the bloc's emerging priorities. The Netherlands previously rejected the June compromise, arguing that it devoted too much funding to existing programmes rather than future challenges.
European Parliament representatives also criticised the earlier proposal and called for a 10% increase to adequately finance traditional spending commitments and new priorities.
EU leaders have been seeking an agreement by December, although significant differences over national contributions and spending priorities remain unresolved.
Source: Investing.com
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