European Union 2028–2034 budget negotiations

Negotiations for the European Union budget for the 2028–2034 period have entered a phase of intensified diplomatic activity. Initially, Poland advocated for an accelerated timeline to finalize the budget within the current year to avoid potential legislative deadlocks caused by upcoming elections in France, Spain, Italy, and Poland. The proposed budget, estimated to be nearly 2 trillion euros, involves discussions regarding new EU-level taxes to fund expenditures. Following widespread criticism of an Irish Presidency proposal that suggested an 8% reduction in spending, European Council President António Costa has assumed the role of lead negotiator. The Irish proposal suggests a decrease of approximately 159 billion euros from the European Commission’s initial 1.985 trillion euro plan, reducing total commitments to 1,622 billion euros. This specific proposal includes a 3% cut in spending for agriculture, fisheries, and regional development. The Commission has expressed regret over these cuts, warning they could jeopardize essential priorities such as defense, competitiveness, and the green transition. MEP Siegfried Mureșan criticized the proposal, describing it as ‘completely empty.’ This development highlights a divide between cohesion countries, such as Portugal, which argue the cuts lack ambition, and frugal Member States, led by Germany, which maintain that reductions remain insufficient. German Chancellor Friedrich Merz has called for even deeper savings. Poland has signaled strong opposition to these cuts, with Deputy Foreign Minister Ignacy Niemczycki stating the country intends to protect national envelopes for agriculture, regional development, and military security. Poland is coordinating with a group of 17 member states known as the ‘friends of cohesion policy’ to maintain a unified stance. Additionally, Polish officials expressed concern regarding disproportionate cuts to democratic resilience and the costs associated with using the Emissions Trading System (ETS) as a new revenue source.