EU 2028‑2034 budget cut by €32.8 bn as Cyprus presidency proposes 2% reduction

The Cyprus presidency of the EU Council presented a ‘negotiating box’ for the next Multiannual Financial Framework (2028‑2034) that trims the total budget by roughly €32.8 billion, a 2 % cut from the Commission’s draft. The revised total stands at about €1.73 trillion (2025‑price terms), down from €1.763 trillion. Reductions are uneven: the competitiveness and security pillar falls from €589.5 bn to €566.5 bn, while agriculture, cohesion and fisheries see modest changes, with the Common Agricultural Policy still receiving €293.6 bn. The proposal also leaves the €149 bn debt‑repayment line for Next Generation EU untouched.

The European Parliament has rejected the council’s draft, arguing it is insufficient for the Union’s challenges and calling for a budget around €1.94‑1.95 trillion. MEPs warned that cuts could jeopardise food security, regional cohesion and defence capabilities, and urged the creation of new own‑resource revenues. The Dutch government has already voiced criticism, deeming the negotiating box too costly and poorly focused. Negotiations between the council, Parliament and the European Parliament will now begin.