EU countries clash over size of new long-term budget
Net contributors want to reduce the proposal of almost €2 trillion, while other countries seek more room.
Negotiations over the European budget for 2028 to 2034 are deadlocked over its size and financing. Germany, the Netherlands and other net contributors fear higher payments, while recipients and the European Parliament point to new shared challenges.
The European Commission has proposed a long-term budget of almost €2 trillion for the 2028–2034 period. According to the Commission, that amounts to an average of 1.26 per cent of the European Union’s gross national income. The proposal is not yet a decision: the member states must agree unanimously and the European Parliament must give its approval.
The discussion is not only about the total amount, but also about its distribution. The Commission wants to pool funds in national and regional plans and create more room for competitiveness, defence, climate, energy and support for regions. According to the Commission, almost half of the proposed amount is intended to reduce regional disparities.
Countries that pay more into the EU budget overall than they receive consider the proposal too ambitious. Germany has called for a smaller budget. The Netherlands, Finland, Denmark and Austria are also among the countries pressing for lower spending. They point to the pressure on their own public finances and the question of which national contributions remain affordable.
Countries that receive substantial European funding fear that cuts would damage economic cohesion. This group also supports new European sources of revenue. That would make the EU less dependent on contributions from member states. The discussion affects agriculture, regional development, research and the repayment of joint coronavirus debts, among other areas.
The European Parliament is also calling for sufficient resources. MEPs warn that member states would have to resolve certain issues themselves at greater cost if the European budget were cut. They also want repayment of loans from the coronavirus recovery fund to remain outside the regular budget.
The next important step is scheduled for the European Council meeting in mid-October. Ireland, which is coordinating negotiations between the member states, is working on a compromise proposal. Under the current timetable, a final agreement is not expected until December. Until then, the amounts, sources of revenue and distribution of subsidies will remain uncertain.
One story, several perspectives
What is established
- The European Commission has put forward a proposal of almost €2 trillion for 2028–2034.
- Member states disagree over its size, distribution and financing.
- An agreement requires unanimity in the Council and the approval of the European Parliament.
Left
Arguments The EU must invest jointly in regions, the climate, social cohesion and public services. A larger shared budget prevents countries from tackling the same problems separately and at greater cost.
Values Solidarity, equal opportunities and public investment.
Consequences Cuts could affect poorer regions and cross-border projects and weaken the European approach to climate and security.
Centre
Arguments The EU has taken on additional responsibilities, but spending must demonstrably deliver a European benefit. A compromise requires clear priorities, oversight of spending and a distribution that both recipients and contributors can explain.
Values Efficiency, institutional responsibility and administrative feasibility.
Consequences A smaller but more targeted budget may be workable, but it will not resolve all of Europe’s new challenges.
Right
Arguments National parliaments and taxpayers must retain control over spending. The EU should first reform existing programmes and limit waste before asking for more money or introducing new taxes.
Values National responsibility, budgetary discipline and subsidiarity.
Consequences A lower budget limits European ambitions, but may protect national governments from higher contributions and joint debts.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The budget’s size, decision-making procedure and main negotiating blocs have been confirmed by European institutions and Euronews. The text makes clear which elements have not yet been decided.
- confirmed The Commission is proposing almost €2 trillion for 2028–2034. — This is stated in the European Commission’s explanatory material. source
- confirmed Member states must agree unanimously and the European Parliament must approve it. — The Commission describes this procedure for the long-term budget. source
- confirmed Net contributors are calling for a smaller budget. — Reuters described the German and other critical positions. source
- confirmed A final agreement is expected in December under the current timetable. — Euronews reports on the planned further negotiations and December as the point at which a compromise is expected. source
Editor's note
The size of the Commission proposal and the procedure are established. The consequences for individual countries are still subject to negotiation and depend on the final decisions on revenue and spending.Sources
- EU budget 2028–2034 explained — Europese Commissie
- Germany Calls for Smaller EU Budget as Costa Pushes New Funding — Reuters Connect
- EU budget talks face deadlock despite push for year-end deal — Euronews
More on this in Dutch media
- AD — „begroting duitsland”
- de Volkskrant — „begroting duitsland”
- RTL Nieuws — „begroting duitsland”