EU countries clash over new long-term budget
An Irish compromise proposal of €1.62 trillion exposes financial divisions within the Union.
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EU countries are divided over the size and priorities of the budget for 2028 to 2034. The Irish presidency has tabled a proposal, but some net contributors still consider the amount too high.
The Irish presidency of the European Union proposed a budget of €1.62 trillion at the weekend. According to Associated Press, that is about 30 per cent more than the current seven-year package, but 8 per cent less than the European Commission had proposed.
For the same period, the European Commission is working with a proposal of almost €2 trillion in current prices. The Council of the EU describes the budget as a plan for investment in areas including security, defence, competitiveness, migration, energy, climate, agriculture and regional cohesion.
Opposition comes mainly from countries that contribute more to the EU than they receive in return. Sweden has said that hundreds of billions of euros in further savings are needed. Germany, a major net contributor, says affordability for the countries that finance most of the budget is a condition for its support.
On the other side are countries and sectors that fear cuts to agricultural and cohesion funds. According to AP, those two policy areas together account for about two-thirds of the current EU budget. Less money for them could create room for defence, research and competitiveness, but would also affect regional and agricultural interests.
For the Netherlands, the discussion is relevant because the outcome will determine how much European funding is available for agriculture, infrastructure, research, energy and border management, among other areas. The new structure provides for national and regional partnership plans, bringing together different funding streams for each member state.
The negotiations have not yet been concluded. EU leaders will discuss the proposal at the summit on 15 and 16 October. The final budget will later require unanimity in the Council, followed by approval from the European Parliament. The Union is aiming for a political agreement by the end of 2026, so that the new period can begin without interruption in January 2028.
One story, several perspectives
What is established
- The Irish presidency has tabled a proposal of €1.62 trillion.
- The European Commission had proposed almost €2 trillion.
- Net contributors are calling for lower spending, while other countries want to protect agricultural and cohesion funds.
- The budget must ultimately be adopted unanimously by the Council and approved by the European Parliament.
Left
Arguments The EU should invest in social cohesion, climate, public services and less prosperous regions. Cuts to agriculture and cohesion could increase inequality; new European revenues are defensible if they fund shared problems.
Values Solidarity, redistribution, social protection and European public goods.
Consequences A budget that is too small could perpetuate regional disparities and make the EU less capable of acting on climate, energy and social protection.
Centre
Arguments The budget must combine new priorities such as defence and competitiveness with predictable support for regions and agriculture. A compromise requires better accountability, targeted investment and a distribution in which no single camp gets everything.
Values Budgetary discipline, feasibility, continuity and institutional compromise.
Consequences A moderate increase with clear conditions could keep the EU governable, but at the same time risks being insufficient for all its ambitions.
Right
Arguments Countries that are net contributors should not automatically keep contributing more to a budget that, in this view, contains too many legacy subsidies and too much bureaucracy. The EU should prioritise border control, security and competitiveness and first reform existing spending.
Values National financial responsibility, efficiency, subsidiarity and security.
Consequences A smaller budget could limit the tax burden on net contributors, but could also lead to less support for farmers, poorer regions and joint European projects.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The current amounts, procedure and positions of the different camps have been confirmed by AP and the Council of the EU. The relevance to the Netherlands is presented as an inference from the budget components mentioned.
- confirmed The Irish presidency proposed a budget of €1.62 trillion. — Reported by AP in its account of the negotiations. source
- confirmed The proposal is 8 per cent below the Commission's version. — AP explicitly mentions this percentage. source
- confirmed The Commission's version amounts to almost €2 trillion in current prices. — The Council of the EU gives this amount and the period 2028–2034. source
- confirmed Agriculture and cohesion together account for about two-thirds of the budget. — AP gives this percentage in its explanation of the negotiations. source
- confirmed The Council must adopt the multiannual budget unanimously and the European Parliament must approve it. — The formal procedure is set out on the Council of the EU's website. source
- confirmed The EU summit will take place on 15 and 16 October 2026. — The date appears in the supplied current headlines and in the Council's negotiating context. source
Editor's note
The Irish proposal, the size of the Commission's version and the formal decision-making procedure are certain. The final Dutch contribution and the distribution by programme have not yet been established.Sources
- Political tensions rise as EU faces budget challenges ahead of elections — Associated Press
- The EU's long-term budget for 2028–2034 — Raad van de Europese Unie
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