EU budget: “Simply unaffordable” – New budget plan exacerbates dispute with net contributors

Brussels. The Irish Presidency presented on Saturday a new working document for the EU's multiannual financial framework (MFF) for 2028 to 2034. The so-called “Negotiating Box” reduces the 1.763 trillion euros proposed by the Commission to 1.622 trillion euros.

This still represents an increase of 30 percent (at today's prices) over the current budget. The next MFF is controversial because of this increase; The so-called frugal net contributor countries, Germany, Denmark, Austria, Finland and the Netherlands, firmly reject this drastic increase.

Chancellor Friedrich Merz (CDU) is calling for a budget reduced by several hundred billion euros. He rejected the new proposal on Saturday: "We are still a long way from an agreement. The amount of the new proposal is not a basis for an agreement." And further: “The EU budget must be affordable for those who bear the brunt of the financing.”

The new Negotiating Box makes savings compared to the Commission document in Pillars 2 and 3 of the budget - i.e. those areas that contain future instruments. Among other things, the European Competitiveness Fund is to be reduced in size. It is the planned central budget instrument to strengthen industrial competitiveness, technological sovereignty and strategic autonomy for the coming budget period.