Six European countries are threatening to block the EU’s multiannual budget for 2028–2034, according to the Financial Times. Germany, the Netherlands, Sweden, Denmark, Austria and Finland are pushing for spending cuts of «hundreds of billions of euros» and for more funds to be channelled towards defence and innovative companies. This is intensifying the dispute with countries that are defending agricultural and regional funding.
Briefly about the main points
- Six EU member states are threatening to block the Union’s seven-year budget.
- They are calling for spending cuts amounting to hundreds of billions of euros.
- The group’s priority is to defend and support innovative companies.
- Seventeen countries are defending funding for farmers and regions.
- The budgetary framework requires a unanimous decision by the Council of the EU.
What changes to expenditure is the group of six countries seeking?
The dispute concerns a long-standing the EU’s financial framework, the draft of which was submitted by the European Commission for the period 2028–2034. Its total value amounts to almost €2 trillion at current prices.
Six countries are calling for a substantial overhaul of the spending structure. They are seeking to increase funding for defence and innovative companies by cutting traditional areas of expenditure, in particular support for farmers and less prosperous regions.
Agriculture and cohesion policy traditionally account for around two-thirds the EU budget. The Commission’s proposal provides for at least €300 billion to support farmers’ incomes and provide crisis relief payments, as well as €453 billion for cohesion under national and regional plans.
The standoff between the countries is complicating the budget negotiations
Seventeen countries are opposed to cuts in agricultural and regional funding, including Spain and Italy. They are calling for an increase in funding for agriculture and regional development.
The position of the six countries in favour of cuts carries weight, as together they account for around 40% of EU budget revenue. At the same time, the adoption of the regulation on the multiannual financial framework in the Council of the EU requires unanimity following the European Parliament’s approval.
The Council of the EU has previously stated that a political agreement is needed by the end of 2026 in order to adopt legislation in 2027 and prevent a funding gap from January 2028.
