Irish EU presidency proposes 8% budget cut for 2028-2034

The Irish Presidency of the Council of the EU has unveiled a new negotiating framework for the 2028-2034 Multiannual Financial Framework (MFF), proposing an 8% reduction in the European Commission's original budget proposal. This represents a total cut of approximately €159 billion, setting the new total commitments at €1.825 trillion in current prices, compared to the Commission's initial €1.985 trillion plan. The proposal marks a significant tightening compared to the previous June draft by the Cypriot Presidency, which suggested a smaller reduction of roughly €37 billion.

The Irish plan specifically targets competitiveness, with cuts of €75 billion (-12.8%), and the 'Global Europe' foreign action sector, with a reduction of €37 billion (-17.4%). Irish Minister of State for European Affairs and Defence, Thomas Byrne, described the proposal as a response to a fiscal dilemma, aiming to balance funding for new priorities like defense and innovation while respecting the budgetary constraints of member states. The document has already triggered strong opposition from several countries.

The EU remains divided between 'frugal' member states demanding deep spending cuts and the 'Friends of Cohesion' bloc, primarily composed of southern and eastern nations, which opposes these reductions. The draft serves as a negotiating position rather than a final agreement, with intense debates expected among the 27 EU leaders during the upcoming summit next week.