EU Leaders Consider €159 Billion Budget Cut Proposal

BRUSSELS — The European Commission has warned that proposed cuts of €159 billion to the EU's next long-term budget could weaken the bloc's ability to handle future crises. This warning comes as EU leaders prepare to meet in Brussels next week to discuss the budget for 2028 to 2034. The cuts, suggested by the Irish presidency, represent an 8% reduction from the previous budget proposal, according to four EU diplomats briefed on the matter.

Budget Cuts and Divisions

Germany is leading the push for significant budget cuts. It is working with Austria, Denmark, Finland, the Netherlands, and Sweden. These countries want reductions totaling several hundred billion euros from the nearly €2 trillion proposal put forth by Brussels. France, however, argues that the EU needs to keep enough funding to address rising challenges. Ireland's Europe Minister Thomas Byrne expressed hope for a deal by Christmas. He stated, "Nobody's going to get everything that they wanted in any proposal, but we think that there is something there for all of the member states."

Challenges Ahead

Despite these discussions, immediate reactions show a lack of consensus. German Chancellor Friedrich Merz said, "The size of the new proposal is not a basis for agreement," stressing that the budget must be affordable for those funding it. Lawmakers in the European Parliament have also criticized the proposed cuts. They argue that the cuts go too far and cannot serve as a starting point for negotiations. The latest draft suggests a 17% cut in international aid, which has raised particular concern among various member states.

Related coverage: Germany and Allies Push for EU Budget Cuts, Reject Borrowing.

Based on reporting by: politico.eu, thelocal.de