Irish proposal reduces EU budget by 141 billion euros

The Irish Presidency of the Council of the European Union introduced a compromise budget proposal for the period 2028–2034 on October 10, suggesting a 141 billion euro reduction from the European Commission’s original plan. The proposal maintains the budget for the Common Agricultural Policy (PAC) but cuts funds for development aid, administrative costs, and a new competitiveness fund.

Budget cuts target non-agricultural areas

The Irish proposal also reduces the budget for the "Unity Safety Net," a fund designed to address agricultural market crises, by 30% compared to the Commission’s initial plan. This comes as member states and the European Parliament continue negotiations to finalize the budget by year-end, aiming to start interinstitutional talks in 2027.

Agricultural groups oppose budget cuts

Agricultural organizations and cooperatives, represented by Copa-Cogeca, rejected the Irish proposal, criticizing the continued reduction in the PAC budget by more than 20% and the cuts to the "Unity Safety Net." They expressed concern over the lack of guarantees to protect the PAC’s historical structure, autonomy, and common character.

European Commission warns of risks

The European Commission expressed disappointment over the proposed budget cuts, with a spokesperson stating that “these budget cuts do not make us happy at all.” The Commission emphasized the significant reduction from its initial proposal of about 2,000 billion euros and warned that major cuts could jeopardize agreed-upon priorities.

Germany and France have differing views

German Chancellor Friedrich Merz criticized the proposed budget amount, calling it “not a good basis” and indicating that Germany and its allies still seek substantial reductions. This position has caused tension with France, which advocates for an ambitious multiannual budget to support EU priorities.

EU leaders to discuss budget at summit

The EU budget will be a key topic at a summit of the 27 member states in Brussels, scheduled for Thursday and Friday. Leaders aim to reach an agreement before Christmas to avoid overlapping with 2027 electoral deadlines, including the French presidential election. However, differing positions among member states and early elections in Spain complicate the timeline.