World · Europe · 2 hrs ago
EU countries clash over 2028-2034 budget as elections approach
EU governments are divided over the bloc’s 2028-2034 budget as they seek agreement before elections in several member countries next year.
The EU’s long-term budget is funded mostly by member countries and needs approval from all of them and the European Parliament.
Ireland proposed a €1.62 trillion plan, 30% above the current budget but 8% below the European Commission’s preferred amount.
Sweden and Germany say the cost must be affordable, while countries are also debating how to fund support for Ukraine and improve Europe’s competitiveness.
Farm subsidies and aid for poorer regions account for about two-thirds of the budget.
A funding gap could force cuts or scaled-back ambitions in areas such as defense and competitiveness.
EU leaders are due to discuss the proposal later this week, with negotiations expected to continue in the coming weeks.
Political tensions are rising over the European Union’s proposed 2028-2034 long-term budget.
Ireland, which holds the EU’s rotating presidency, proposed a budget of 1.62 trillion euros, 30% more than the current package but 8% below the European Commission’s proposal.
Sweden says the plan is unaffordable and calls for several hundred billion euros in cuts, while Germany says the budget must be affordable for the countries financing it.
The budget must be endorsed by all EU member countries and the European Parliament.
Negotiations are taking place amid plans to support Ukraine and strengthen European competitiveness, as elections loom in several member countries next year.
- Who
- EU member countries and the European Parliament are involved in negotiating the next long-term budget.
- What
- They are debating the 2028-2034 budget, including its overall size and spending priorities.
- When
- The negotiations are under way in October 2026, ahead of an EU leadership summit later this week.
- Where
- Brussels and Luxembourg.
- Why
- The EU needs to agree on how to finance its priorities, including support for Ukraine and competitiveness, while reconciling competing demands and economic limits.
Sweden and other net contributors
Countries opposing cuts to cohesion and farm spending
Budget size
Sweden and other net contributors
Sweden says the proposal is unaffordable and calls for several hundred billion euros in cuts.
Countries opposing cuts to cohesion and farm spending
These countries reject cuts to cohesion funds for poorer regions or to agricultural spending.
Spending priorities
Sweden and other net contributors
Sweden’s EU affairs minister says the plan would increase Sweden’s contribution by 60%, limiting priorities at home.
Countries opposing cuts to cohesion and farm spending
Their resistance to cuts preserves spending that together accounts for about two-thirds of the budget.
Ireland proposed setting the 2028-2034 budget at 1.62 trillion euros.
German Chancellor Friedrich Merz welcomed Ireland’s efforts but said an agreement remained far off.
EU affairs ministers met in Luxembourg to discuss the Irish proposal.
Merz and other EU leaders were due to begin two days of talks in Brussels.
- Proposed budget
- 1.62 trillion euros ($1.81 trillion)
- Budget increase
- 30% above the current seven-year package
- Difference from Commission proposal
- Ireland’s proposal is 8% lower
- Budget scale
- Around 1.2% of the 27-nation EU’s gross national income
- Sweden’s contribution
- The Irish plan would mean a 60% increase, according to Sweden’s EU Affairs Minister Jessica Rozencrantz
- Main spending areas at issue
- Farm and cohesion spending account for about two-thirds of the budget
What people are saying
It’s wildly unaffordable, and the volume must go down.
The EU budget must be affordable for those who bear the main burden of financing.
We weren’t asked to find a basis for agreement. That will come later.
Nobody’s going to get everything that they want. But we hope that there’ll be something there for everybody.
Sources
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