Wealthier member states are intensifying efforts to scale back the European Commission’s proposed EU budget, setting the stage for heated negotiations over the bloc’s long-term spending plans.
Net contributors push for lower spending
Nine net contributor countries, those that pay more into the EU than they receive, are coordinating their position ahead of crucial talks in Brussels.
The group includes Sweden, Denmark, Finland, Austria, the Netherlands, Germany, France, Ireland and Belgium. Ministers are expected to meet to align their strategy ahead of discussions on the EU’s next Multiannual Financial Framework (MFF).
Swedish European Affairs Minister Jessica Rosencrantz said the proposed spending level is too high. “The volume needs to come down, substantially,” she said, adding that there is limited fiscal room for higher national contributions.
€1.8 trillion EU budget proposal under scrutiny
The European Commission has proposed a long-term EU budget of up to €1.8 trillion for the 2028–2034 period. Including debt repayments linked to the Covid-19 recovery package, total spending would approach €2 trillion.
That would represent about 1.26% of the EU’s gross national income, compared with 1.1% in the current seven-year budget cycle.
Austria’s Europe Minister Claudia Bauer said member states are already facing tight national budgets and warned against increasing EU contributions. “We must move away from the Brussels reflex of simply trying to solve every problem with more money,” she said.
Divisions between EU member states
A separate group of 16 countries – including Italy, Spain and Poland – is resisting spending cuts in key areas such as agriculture, cohesion funds and fisheries policy.
They argue that these sectors are already under pressure in the Commission’s proposal and should not be reduced further.
The disagreement highlights widening divisions over the direction of the EU budget, with one camp pushing for restraint and another calling for stronger investment in regional development and farming subsidies.
Rebates and repayment costs in focus
The debate has also revived tensions over national rebates, which reduce contributions for countries such as Germany, Sweden, Austria, Denmark and the Netherlands. Several member states are now calling for these rebates to be scrapped.
Another sticking point is the repayment of EU-level borrowing linked to the Covid-19 recovery fund, estimated at around €168 billion over the next budget period.
Cyprus to play key coordination role
As negotiations progress, Cyprus – which currently holds the rotating presidency of the Council of the EU – is preparing a detailed breakdown of the proposed spending plan.
The updated “NegoBox” document could be circulated in early June, ahead of discussions among EU ambassadors and a leaders’ summit later in the month.
The coming weeks are expected to be crucial in determining the final shape of the EU budget, as member states attempt to balance fiscal restraint with demands for investment in defence, competitiveness and cohesion.
Also read: 2028–2034 budget, Middle East and Ukraine in EU plenary
For more videos and updates, check out our YouTube channel
