EU outlines modest cuts in 2028‑2034 multi‑annual budget

The Cypriot EU Council presidency presented a compromise proposal for the 2028‑2034 multi‑annual financial framework amounting to €1.947 trillion, roughly two percent below the European Commission's €1.984 trillion draft. The plan would see the EU spend about 1.23 % of its gross domestic product, a slight rise from the current 1.1 %.

Key allocations remain largely unchanged for agriculture and regional development, totalling €864 billion, while the new EU competitiveness fund faces a cut of about four percent to €433 billion. A modest reduction is also planned for foreign‑policy spending. The proposal adds 2,500 new EU civil‑service posts and earmarks €168 billion for repaying pandemic‑related debt.

The budget has sparked a clash between fiscally‑conservative members (Austria, the Netherlands, the Nordic states and parts of Germany) advocating tighter limits and those pushing for higher spending. The European Parliament has called for an increase to €2.2 trillion. Negotiations are expected to intensify ahead of elections in France, Italy and Spain, with a final agreement targeted for the end of the year.