Home Economy Five EU States Demand Major Cuts to Proposed 2028 to 2034 Budget
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Five EU States Demand Major Cuts to Proposed 2028 to 2034 Budget

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Germany, Denmark, Finland, the Netherlands and Austria have called for the European Union to cut its proposed €2 trillion budget for 2028 to 2034 by several hundred billion euros.

In a joint opinion article, the five countries said the proposed increase was too large and argued that EU spending should give greater priority to security, defence, competitiveness, innovation and tackling irregular migration.

The European Commission has proposed a budget equivalent to 1.26% of EU gross national income, including about €168 billion for servicing borrowing linked to the bloc’s post pandemic recovery fund.

Countries that receive more EU funds than they contribute fear the cuts could reduce support for farmers and poorer regions.

Spain has proposed extending the repayment period for part of the EU recovery debt and linking payments to economic growth, a move it says could free about €70 billion.

EU leaders are expected to discuss the budget at summits in October, November and December, with the aim of reaching an agreement before the end of the year.

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