The reduction of the budget for European Union institutions has become an important topic in the ongoing negotiations among member states. Member states are looking to cut costs as part of the agreement on the future long-term budget of the European Union.
Intensive Negotiations on the Future Budget
Countries are currently examining how to reduce costs as part of a broader agreement under which the European Commission, the European Parliament, and the Council of the European Union may see their budgets reduced. EU countries are engaged in intensive negotiations regarding the Multiannual Financial Framework (MFF) for the years 2028 to 2034. On Wednesday, ambassadors from member states will discuss potential areas of agreement for the total budget, which was initially set at around €2 trillion.
Concerns About Rising Costs
According to reliable sources, many European governments are skeptical about the proposed increase in personnel levels in the European Commission's plan. This comes as many member states are limiting costs and the number of personnel in their national public services. Meanwhile, member states have divided into two camps: one group, including France and Spain, is calling for a larger budget, while another group, such as Germany and the Netherlands, is advocating for a reduction of several hundred billion euros in the budget.
In June, the rotating presidency of Cyprus over the Council of the European Union proposed an overall budget reduction of 2%, with the most significant cuts focused on the Competitiveness Fund and the Global Europe Fund, which relate to defense and industrial investments. The current presidency of Ireland is working on a new agreement expected to be presented in early October.
In this context, the Irish government has inquired with EU ambassadors about the proposed spending volume in a note. Financial priorities include support for national and regional programs for poorer areas, agriculture, and fisheries. Additionally, the Competitiveness Fund, aimed at strengthening European defense research and industries, faces broad support for its objectives.
Ultimately, pressures on the EU's external action services to reform and increase efficiency are rising. Meanwhile, new plans are being considered that may place the Union's diplomatic services directly under the responsibility of the Commission. Discussions on the EU budget will continue at the upcoming Council of General Affairs meeting next week.
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