Ireland proposes an 8 per cent cut to the EU’s next budget
Ireland’s EU presidency proposed a seven-year budget below the European Commission’s draft, while retaining an increase over the current framework. The negotiating plan redistributes cuts across agriculture, research, defence and external relations, and changes how revenues would reach the common budget. Member states still have to negotiate the spending and revenue proposals.
Economics & Markets··Morning
Ireland lowers the proposed seven-year total
Ireland’s presidency of the Council of the European Union proposed reducing the bloc’s 2028–2034 budget draft by 141 billion euros, or 8 per cent. Ireland’s European affairs minister Thomas Byrne described the proposal as a compromise among member states.[1], [2]
The plan puts spending at 1.622 trillion euros in constant 2025 prices, still approximately 30 per cent above the current framework. The proposed total in current prices is 1.825 trillion euros.[1]
Research and defence face a larger proportional cut
The draft assigns 914 billion euros to cohesion, agriculture and fisheries, 3 per cent below the Commission proposal. Competitiveness, research and defence receive 456 billion euros after a 13 per cent reduction. Administration falls to 95 billion euros, down 8.8 per cent. The external-relations programme Global Europe receives 157 billion euros, a 17 per cent cut. These allocations remain negotiating proposals.[1]
Revenue sharing joins the budget negotiations
Ireland targets 55 billion euros annually from new own resources. It proposes giving the common budget 90 per cent of customs receipts and raising its share of Carbon Border Adjustment Mechanism revenue from 75 per cent to 90 per cent. Taxes on digital services, online gambling and crypto assets proposed by Parliament were omitted. Thomas Byrne said new resources needed unanimous approval, substantial revenue and availability from 1 January 2028. Ambassadors are scheduled to discuss the draft on 11 October, ministers on 13 October and leaders on 15–16 October.[1]
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