European Parliament rejects Ireland’s proposed cuts to the next EU budget

Ireland, which currently holds the rotating presidency of the EU Council, has proposed a smaller budget for the European Union for 2028 to 2034.

The draft would reduce the Commission’s proposed budget by about €140 billion, though one account puts the reduction at €141 billion.

The European Parliament says the proposal should not be the starting point for negotiations because it could weaken the EU’s ability to respond to challenges.

Spain and other countries that want a larger budget are also unhappy, while Germany, Austria, Denmark, Finland, the Netherlands and Sweden say the proposed cuts do not go far enough.

The reductions are uneven: the proposal cuts funding for competitiveness and defence by 13%, while cuts to external action are larger.

The Commission has also raised concern that funds set aside to give the budget flexibility would be cut by at least half.

EU leaders are due to discuss the proposal, with negotiations expected to continue under European Council President António Costa and an agreement sought before the end of the year.