Cyprus EU Presidency proposes 2% cut to the 2028‑2034 EU budget

The Cypriot Presidency of the Council of the European Union, represented by Minister of European Affairs Marina Raouna, presented a revised negotiating framework for the EU's Multiannual Financial Framework (MFF) 2028‑2034 ahead of the European Council meeting scheduled for 18‑19 June in Brussels. The proposal calls for a horizontal 2% reduction – roughly €32.8 billion – from the European Commission’s initial €2 trillion budget plan. The cut is spread across all major budget headings; cohesion and agriculture programmes would see only about a 0.5% decrease, while larger reductions target competitiveness and external action.

The Presidency frames the offer as a “mature and balanced” compromise that addresses the demands of Member States with gross national income below the EU average and shifts national allocations to about 41 % of total spending, down from the current 60 %. Some Member States, notably Germany and the Netherlands, consider the cut insufficient and the overall budget too high. Dutch Finance Minister Elco Heinen described the proposal as “unacceptable” and “mis‑directed.” European Council President Antonios Costa stressed the need to reach an agreement before the end of the year, noting that upcoming elections in France, Italy, Spain and Poland could narrow the space for political compromise.