Cyprus Resists Northern States’ Demands
The Cyprus Presidency of the European Union is expected to reject pressure from Germany and other northern member states seeking significant reductions in the bloc’s next seven-year budget, according to a report by Politico citing four European diplomats.
Nicosia is expected to present updated fiscal figures by 10 June and is reportedly opposing proposals for budget cuts to agricultural subsidies and funding for less-developed EU regions. These two areas represent some of the largest components of the EU budget and are strongly supported by countries in Southern and Eastern Europe.
Negotiation Document Near Completion
According to the report, Cyprus recently completed consultations with ambassadors from EU member states and is now in the final stages of preparing the so-called “negobox” — the document containing detailed proposals and figures for budget allocations covering the 2028–2034 period.
The debate over EU budget cuts has intensified as member states seek to balance competing priorities while managing increasing financial pressures across the bloc.
Division Between North and South
Opposing the position of countries such as Germany and the Netherlands, which argue they cannot further increase their contributions to the EU budget, is a coalition of 16 member states, including Italy, Spain and Poland.
These countries are calling for stronger support for farmers, fishermen and regional development programmes, arguing that such funding remains essential for economic cohesion across the European Union.
EU Summit to Focus on Budget Talks
The issue is expected to dominate discussions at the EU Summit on 18–19 June, where European leaders will review the negotiating document prepared by the Cyprus Presidency.
Meanwhile, Cyprus Deputy Minister for European Affairs Marilena Raouna recently said she sees “areas of convergence” on the most sensitive issues, although she did not provide further details.
Possible Limited Reductions
Diplomatic sources cited by Politico also suggest that Nicosia is considering limited reductions of between 2% and 3% to the European Competitiveness Fund and the Global Europe programme, which finances development initiatives outside the EU.
The prospect has already drawn criticism from the so-called “frugal” northern countries, which argue that any reductions should be distributed more evenly across spending programmes.
The new Multiannual Financial Framework foresees spending of €1.8 trillion for the 2028–2034 period. Including repayments related to pandemic-era borrowing, the total financial package is expected to approach €2 trillion.
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