By Jan Strupczewski and Foo Yun Chee
BRUSSELS, Oct 10 (Reuters) – The Irish EU presidency proposed on Saturday an 8% cut in the European Commission’s budget plan for the period 2028 to 2034 to €1.6 trillion ($1.79 trillion), drawing criticism from more frugal member states that the reduction is not deep enough.
The Irish proposal still marks a 30% increase over the bloc’s current budget, which runs from 2021 to 2027. The EU budget is the main source of financing for all of the 27-country bloc’s main policies.
The Commission, the EU executive, has said the bloc needs to spend more on defence and boosting European competitiveness, while some member states want to retain most of the expenditure to support farming and regional development.
“The Negotiating Box provides savings of 8%, or €141 billion, on the Commission’s original proposal,” said Ireland, current holder of the EU’s six-month rotating presidency, referring to its compromise proposal.
Ireland put the Commission’s original €2 trillion figure adjusted for inflation over the seven-year period at €1.76 trillion based on 2025 prices, which resulted in an 8% reduction.
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“As we see it, the negotiating box acts to bridge the many differences between the member states,” Irish minister Thomas Byrne told a press conference.
“It brings us closer to resolving the budgetary trilemma, addressing the talks of how best to finance new priorities in competitiveness, research, innovation, security and defence while at the same time addressing core policies,” he said.
The proposal sets out a 3% cut in spending on regional development, agriculture and fisheries from the Commission’s own figures — the biggest outlay in the budget — and a 13% reduction in spending on competitiveness and security.
It foresees €55 billion in new financing options derived from customs duties, a share of the cash EU governments get from selling CO2 emissions permits to companies and an annual lump-sum contribution from large companies operating in the EU, among other sources.
Germany’s Chancellor Friedrich Merz joined ministers from Sweden and the Netherlands – all three countries are net contributors to the budget – in criticising the Irish proposal.
“The EU budget must be affordable for those who bear the main burden of financing it,” he said.
However, lawmakers in the European Parliament, which wants a 10% increase in the Commission’s €2 trillion proposal, said the Irish plan would weaken Europe and would not win their consent.
EU leaders will discuss the Irish proposal in Brussels on October 15 to 16. The EU budget, which is known as the Multiannual Financial Framework, needs to be agreed by all 27 member states.
($1 = 0.8928 euros)
(Reporting by Foo Yun Chee and Jan Strupczewski, additional reporting by Andrew Gray and Lili Bayer in Brussels and Andreas Rinke in Berlin;Editing by Gareth Jones)
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