The European Commission warned that the €159 billion reduction in the EU's long-term budget will make this region more vulnerable to crises. This warning was issued ahead of the European Union leaders' summit in Brussels regarding the future spending plans of this bloc.
Risks of Budget Cuts
The European Commission has informed governments that removing billions of euros from several emergency funds will make the union less capable of dealing with crises during the upcoming seven-year budget period. Stefania Rizzo, the Commission's senior budget official, raised this warning in a closed meeting with 27 EU ambassadors on Sunday.
The Ireland Plan and Reactions
Ireland, which holds the presidency of the EU Council, has proposed a reduction of about 8% from the total EU budget between 2028 and 2034. In this context, €38 billion in foreign aid and €75 billion in competitiveness have been cut. However, a group of countries led by Germany believes these cuts are insufficient and is calling for reductions in the hundreds of billions.
In this meeting, another group of 17 countries, known as the Friends of Solidarity, expressed satisfaction that Ireland has exempted agricultural sectors and regional payments from the cuts. EU governments are trying to reach an agreement on the budget by the end of the year, before elections in France, Italy, and Poland that could disrupt negotiations.
The European Commission also warned that the proposed cuts by Ireland would bring the future budget below the current budget and negatively impact the EU's key priorities, including competitiveness and foreign aid.
The proposed changes by Ireland also include cuts or eliminations of several financial funds that protect EU countries from unforeseen events such as natural disasters or health crises. According to the Commission, these changes will make future budget expenditures more rigid and inflexible compared to the current budget.
However, Thomas Byrne, Ireland's Minister for Europe, claimed at a press conference that this proposal "offers greater flexibility" and responds to the clear requests of member states for a simpler and more flexible budget.
