EU split over cuts to €2 trillion long-term budget as talks open

September 14, 2026 at 04:08 PM2 min

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EU ambassadors meet Wednesday to discuss the bloc's 2028-2034 budget as member states remain divided over spending levels and funding sources. An internal note from the Irish presidency says reluctance to increase contributions points to a need to reflect on expenditure ambitions. The European Commission has proposed a €2 trillion budget, but governments resist paying more while national budgets are being cut.

Key Facts

The European Commission has proposed a €2 trillion budget for 2028-2034.
Germany, the Netherlands and Sweden want cuts to agriculture and cohesion spending.
Italy, Poland and Spain refuse cuts to the heading that supports poorer areas and farmers.
Carbon emissions and e-waste levies are frontrunners for new EU budget revenue.
António Costa is wrapping up his budget road trip with stops in Rome, Paris, Vienna and Brussels this week.

Budget Negotiations

Ambassadors will discuss how EU expenditure could be structured under the bloc's next seven-year spending plan from 2028 to 2034. The Irish presidency of the EU Council asked ambassadors to identify changes that could make the Commission's package more acceptable. The note urges ambassadors to come forward with specific input on what would be an acceptable budget volume to them. António Costa, the EU council president, is in charge of getting a budget deal over the line by the end of the year.

Member State Divisions

A group of fiscally hawkish member states, including Germany, the Netherlands and Sweden, champion a 'modern' budget focused on defence and competitiveness. They eye cuts to traditional policies, including agriculture and cohesion. The group of cohesion-friendly countries, including Italy, Poland and Spain, refuse cuts to the spending heading that supports poorer areas and farmers. Friedrich Merz, the German chancellor, said last week that with the budget of the twentieth century, we will not be able to solve the problems of the twenty-first century.

Funding Sources

There is no consensus on how to find funding streams for the EU budget, known as 'own resources'. A levy on carbon emissions and a tax on e-waste have emerged as frontrunners for new EU budget revenue. European governments are averse to paying more directly into Brussels coffers but lack appetite for agreeing new taxes to fund EU spending.