Key facts
- Cyprus proposed a €32.8 billion cut to the EU's 2028-2034 budget.
- The proposal represents a 2% reduction from the European Commission's initial draft budget.
- The plan aims to balance differing spending priorities among EU member states.
- The Netherlands has rejected the proposal, deeming it unaffordable and unbalanced.
- The European Parliament is calling for a 10% increase in the budget.
Cyprus, holding the EU presidency, has put forward a compromise proposal for the bloc's 2028-2034 budget, suggesting a €32.8 billion cut, or 2%, from the European Commission's initial draft. This move aims to reconcile differing priorities among member states, proposing slightly more funds for agriculture and living standards while reducing allocations for defense and competitiveness.
The proposal, prepared after extensive consultations, seeks to serve as a basis for negotiations, though it has already faced criticism. The Netherlands has rejected it as unaffordable and misaligned with future challenges, while the European Parliament is advocating for a 10% budget increase to address new priorities. Contentious issues like budget correction mechanisms and the repayment of the COVID recovery fund were omitted from this initial proposal.
The budget, if adopted as proposed, would represent 1.23% of the EU's Gross National Income (GNI), or 1.13% excluding the COVID recovery fund repayment. Agreement by year-end is pressured, with upcoming national elections in several member states potentially complicating future discussions.