Ursula von der Leyen, President of the European Commission, warned about the reduction of the upcoming seven-year budget of the European Union in response to Germany's calls for significant cuts in spending.
Warning About the Risks of Budget Cuts
In a speech at the European Parliament in Strasbourg, von der Leyen stated that reducing the size of the EU's common fund could harm critical priorities such as competitiveness and energy self-sufficiency. She told Members of the European Parliament: "I want to warn against significant cuts. This action could damage the critical priorities we have all agreed upon."
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Budget Draft and Political Pressures
This warning comes just days before Ireland's presidency of the EU Council is set to present a draft document for budget negotiations with new figures. Von der Leyen had previously referred to the Commission's budget proposal for 2028-2034 as "the most ambitious proposal ever put forward," but on Tuesday, as negotiations approached a critical time, she adopted a more cautious tone.
She reminded Berlin that the Commission's budget proposal represents 1.26 percent of the EU's gross national income, which is a relatively small increase from the current seven-year fund. She also emphasized the need for the approval of "a significant package of new resources" that EU-wide taxes would finance the budget and reduce national contributions to Brussels.
Governments in the bloc are trying to reach an agreement by the end of the year before elections in France, Italy, and Poland in 2027 disrupt negotiations. However, EU leaders have yet to agree on the size of the new budget.
Germany and its northern European allies have asked Dublin to implement cuts worth hundreds of billions of euros across the budget. In an indirect threat, German Chancellor Friedrich Merz stated, "Not having a new financial framework is definitely the best financial solution for Germany." However, he added that such a scenario would limit the Union's ability to act and called for the end of negotiations by the end of the year.
Several European officials believe that Dublin will propose budget cuts exceeding 100 billion euros. This proposal is set to be presented on Saturday and discussed by EU representatives on Sunday.
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