EU ministers deadlocked over 2 trillion budget as frugal states demand cuts

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EU ministers deadlocked over 2 trillion budget as frugal states demand cuts
EU members deadlocked over 2028–2034 budget and new EU taxes
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EU ministers met in Brussels on Tuesday to negotiate the bloc’s 2028–2034 budget, with deep divisions over funding levels and priorities stalling progress toward a year-end deal. European Council President António Costa has pushed for a €2 trillion budget over seven years, but Germany, the Netherlands, Denmark, Finland, Austria and Sweden demand cuts of “several hundred billion” to ensure financial sustainability, according to the Dutch ambassador.
The impasse reflects a split between net contributors and recipients, compounded by a Commission proposal to shift funds from agriculture and regional support to research, innovation and competitiveness—a move backed by the frugal states. A group of about 20 countries, primarily in Southern and Eastern Europe, opposes this reallocation and seeks a larger budget to maintain existing programs. Latvia, supported by Lithuania, Estonia, Finland, Poland and Romania, has requested an additional €7 billion to offset economic losses from geopolitical threats, citing higher inflation and lower GDP growth along the EU’s eastern flank.
European Commissioner for Budget Piotr Serafin acknowledged the familiar deadlock, noting that positions have remained unchanged for decades. Irish Minister for European Affairs Thomas Byrne said member states still aim for a December agreement, with a compromise text expected at the mid-October European Council summit. Costa warned that major cuts to defense, competitiveness or agriculture would face resistance, a remark German Europe Minister Gunther Kirchbaum called “not helpful” .
Commission President Ursula von der Leyen and Costa have repeatedly urged an ambitious budget backed by new EU taxes to fund strategic sectors, but Poland has opposed revenue sources like the Emissions Trading System, arguing they would disproportionately burden poorer member states .
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