The governments of the European Union expect that the proposed size of the future budget for this bloc will be reduced by 100 to 200 billion euros from the previous plan announced in June. Ireland, which holds the presidency of the Council of the European Union, will announce this proposal on Saturday, and this issue will set the stage for tough discussions among EU leaders at next week's summit.
Differences of opinion between frugal countries and solidarity-supporting countries
The European Union is divided into two camps: frugal countries like Germany, Austria, and the Netherlands, which are calling for a reduction of several hundred billion euros from the nearly 2 trillion euro budget, and a rival coalition of southern and eastern countries, known as the "friends of solidarity," who oppose these cuts.
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Dublin is expected to reduce the budget by 100 to 200 billion euros to be presented as a goodwill gesture to the German camp. However, Ireland's plan aims to protect the agricultural sector and regional spending from major cuts as a concession to the "friends of solidarity."
Challenges ahead for agreement and national elections
At next week's summit, EU leaders will respond to the new figures, known as the "negobox," which allows governments to negotiate, and will provide indications of the possibility of an agreement by the end of the year. Governments are trying to reach an agreement among themselves before national elections in France, Poland, and Italy in 2027 to avoid disruptions in negotiations.
The Irish Minister for European Affairs, Thomas Byrne, told the European Parliament that EU member states have made significant progress towards reaching an agreement. However, he warned that "we cannot please everyone."
Frugal countries expressed their criticisms of the previous presidency of Cyprus for only reducing 32 billion euros in the last negobox in June. Their calls for budget savings have raised concerns among the "friends of solidarity."
As a result, Ireland expects to propose budgetary savings in other policy areas. Governments are prepared for major cuts in the European Global Fund and the European Competitiveness Fund.
Another sensitive issue raised in the negotiations is the EU-wide taxes known as "own resources" to finance the budget and reduce national contributions. In 2025, the European Commission proposed five new taxes expected to generate 66 billion euros annually.
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