We want bigger cuts to EU budget than planned, richer countries say

Key Points:

• A group of wealthy northern EU countries, including Germany and the Netherlands, oppose the Cypriot proposal for only a 2 percent (€32.8 billion) cut to the EU's nearly €2 trillion budget for 2028-2034, demanding much deeper reductions.
• The Cypriot "negobox" plan aims to balance demands by protecting farmers’ subsidies and regional payouts favored by southern and eastern countries, but applies the largest cuts to innovation and development aid funds, sparking backlash from northern nations.
• The EU is under pressure to finalize the budget deal by December amid political uncertainty ahead of the 2027 French elections, with Ireland set to take over the EU Council presidency to steer negotiations toward compromise.
• Northern countries criticize the proposal for maintaining outdated spending priorities and insufficiently addressing new challenges like defense and industrial competitiveness, while southern and eastern countries broadly welcome the protection of key subsidies.
• The ongoing budget talks reveal deep divisions between fiscally conservative northern states seeking major cuts and southern and eastern states advocating for a larger budget, setting the stage for tense negotiations at the upcoming EU leaders’ summit.