Ireland proposes 8% cut to EU seven-year budget

Ireland’s presidency of the Council of the European Union has proposed cutting 8% from the European Commission’s planned 2028-2034 budget, a reduction it says would save €141 billion. The negotiating proposal is not a final budget and must be agreed unanimously by all 27 member states. The proposal puts the seven-year budget at €1.76 trillion in 2025 prices, while it is also described in the reporting as about €1.6 trillion. Ireland says the reduction is measured against the Commission’s original plan, which it gives as €2 trillion. Even after the cut, the proposed budget would be 30% higher than the current 2021-2027 budget. The proposed adjustments vary by spending area. Compared with the Commission’s figures, the plan cuts funding for regional development, agriculture and fisheries by 3%, and funding for competitiveness, prosperity and security by 13%. The proposal also foresees €55 billion in new financing options, including customs duties and revenue from emissions permits. The budget debate reflects different priorities among member states. The European Commission has argued that the bloc faces demands to spend more on defence and improve its competitiveness.