Ireland proposes 8% cut to EU’s next long-term budget

Ireland, which holds the European Union’s rotating presidency, has proposed cutting the bloc’s 2028–2034 budget by 8% from the European Commission’s original plan, in a bid to bridge divisions among member states over spending.

Ireland, which holds the European Union’s rotating presidency, has proposed cutting the bloc’s 2028–2034 budget by 8% from the European Commission’s original plan, in a bid to bridge divisions among member states over spending.

The proposal would reduce the budget by €141 billion. It puts the total at about €1.6 trillion in the headline comparison, or €1.76 trillion when calculated at 2025 prices, compared with the Commission’s proposed €2 trillion.

The revised figure would still represent an increase of about 30% over the EU’s current seven-year budget, which runs from 2021 to 2027. The proposal is a negotiating position and will be subject to further discussions among member states.

Ireland said its proposed “Negotiating Box” would deliver savings of 8% against the Commission’s original plan. The document is intended to help EU leaders work towards a compromise on the bloc’s long-term spending priorities.

The proposed reductions include a 3% cut to the Commission’s planned spending on regional development, agriculture and fisheries, and a 13% reduction in funding for competitiveness, prosperity and security.

The plan comes amid pressure from Germany and other fiscally conservative member states to curb spending. Other countries, including those seeking to protect support for farmers and regional development, want to preserve more funding for traditional EU policies.

The proposal also envisages €55 billion in new financing from sources including customs duties and revenue from the sale of carbon emissions permits to companies.

EU leaders are due to discuss the proposal at a summit in Brussels on October 15 and 16. Agreement on the bloc’s long-term budget, known as the multiannual financial framework, requires unanimity among all 27 member states.