Von der Leyen warns against EU budget cuts

The warning comes as the Irish presidency, which is leading the budget negotiations, is expected to present a new negotiating document with revised figures. Von der Leyen had previously described the Commission's budget proposal for 2028-2034 as its most ambitious ever, but adopted a more cautious tone as intergovernmental talks intensify.

She reminded governments that the Commission's proposal represents 1.26% of the EU’s gross national income, a modest increase from the current budget. Von der Leyen also emphasized the necessity of approving "a significant package of new own resources," which are EU-wide taxes designed to fund the budget and lessen reliance on national contributions.

EU governments are aiming to reach an agreement by year-end, before potential disruptions from elections in France, Italy, and Poland in 2027. However, significant disagreements persist over the budget's size. Germany and its Northern European allies are pressing for cuts amounting to hundreds of billions of euros, while 17 countries from Southern and Eastern Europe, led by Italy and Romania, are advocating for the preservation of agricultural subsidies and regional development funds.

German Chancellor Friedrich Merz indicated that opting for no new financial framework might be the most financially beneficial outcome for Germany, though he acknowledged this would limit the EU's capacity to act. Officials anticipate that the Irish presidency's proposal, expected on Saturday, could involve budget cuts exceeding €100 billion.