A new clash has erupted within the European Union over the next seven-year budget, with Germany and five of the main contributing countries opposing the European Commission’s financial plan.
Germany, the Netherlands, Sweden, Denmark, Austria and Finland have warned that they may block the adoption of the budget for the period 2028–2034 unless significant spending cuts are made.
At the center of the debate is the European Commission’s proposal for a budget of around 2 trillion euros, which according to the six countries should be deeply revised.
In a letter obtained by the Financial Times, the countries are calling for a greater share of the funds to be directed towards sectors such as defence, industrial competitiveness and migration management. In parallel, they are calling for a reduction in funds for agricultural subsidies and regional development.
A diplomat from one of the signatory countries has warned that without a significant reduction in spending, a budget agreement is not expected to be reached this year.
But their stance faces opposition from 17 other member states, including Spain and Italy, which demand that funding for agriculture and regional development be maintained at high levels.
The adoption of the EU’s multiannual financial framework requires the agreement of all 27 member states, making compromise between different groups crucial to the progress of the negotiations.
Ireland, which will hold the next presidency of the Council of the EU, is expected to play a role in mediating between the parties ahead of the European Council summit to be held on October 15 and 16.