EU proposes €160 billion cut to seven-year budget
Ireland has presented a compromise proposal for the European Union's next seven-year budget, calling for spending cuts of approximately €160 billion ($179 billion). The proposal reduces the European Commission's original plan by 8%, although several member states still consider the spending levels excessive.
According to Bloomberg, the document was presented on October 10 ahead of an EU leaders' summit scheduled for October 15–16 in Brussels. The European Commission initially proposed a €2 trillion budget.
Ireland's Minister of State for European Affairs, Thomas Byrne, said the compromise opens the next stage of negotiations. He noted that the proposal takes member states' priorities into account, although no country will get everything it wants.
Cuts target development and competitiveness
The proposed changes would reduce spending on development programs, administrative costs and the EU's competitiveness fund. However, funding for the Common Agricultural Policy and support for less prosperous regions would be preserved.
Despite the cuts, the new budget would remain approximately 30% larger in nominal terms than the previous seven-year financial framework covering 2021–2027.
Germany, Austria and the Netherlands are pushing for further spending limits, while Italy and Spain oppose the reductions. Germany previously described the European Commission's original proposal as unacceptable.
Dutch Prime Minister Rob Jetten stressed that a larger budget would be difficult to justify amid pressure on national finances. He said spending should reflect security, economic resilience and competitiveness priorities.
German Member of the European Parliament Christian Ehler criticized the compromise, arguing that reduced funding would weaken Europe's position in artificial intelligence, quantum technologies and clean technology development.
Negotiations to continue at October summit
European Council President António Costa hopes to reach a budget agreement by December. Alongside the financial framework, EU leaders plan to discuss energy, Ukraine and relations with China.
The main disagreement concerns how funding should be divided between traditional spending areas and emerging priorities. Agriculture and support for less developed regions have historically accounted for more than half of the budget, but some policymakers are calling for greater investment in research, innovation and defense.
Meanwhile, the European Commission has introduced an initiative to stimulate economic growth through investment in clean technologies and energy. The program aims to align EU member states' climate and economic objectives.
European officials expect such investments to create jobs and reduce carbon emissions. However, the proposed reduction in the competitiveness fund has intensified debate over financing the bloc's technological and industrial priorities.
Earlier, we reported that France and Germany called for expanded EU trade powers amid discussions over policy toward China. The two countries proposed strengthening tools to protect European economic interests.
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