EU budget squeeze: Ireland sees (some) saving potential

EU Budget Summit: Ireland sees (some) savings potential October 10, 2026Ireland has put forward a new proposal for the next budget of the European Union in the context of its EU Presidency: Compared to the draft by the EU Commission with a total amount of almost two trillion euros for the years 2028 to 2034, it provides for cuts of 159 billion, as the government in Dublin announced. This means that the so-called Multi-annual Financial Framework (MFF) - compared to the current budget period of 2021 to 2027 - is still about 30 percent higher. Ireland proposes significantly lower spending than the EU Commission in the areas of competitiveness, research, defense, as well as foreign and development policy. New sources of revenue amounting to 55 billion euros are to be generated, among other things, through tariffs and the sale of CO2 emission certificates to companies. EU States Deeply Divided The Irish proposal will be discussed for the first time at the EU summit on October 15 and 16. Political observers expect tough negotiations that may last for months. It requires an unanimous decision from all 27 member states. Resistance is expected, including from Germany, which advocates for more thrift and is the largest net contributor within the European Union. The federal government demands - as do Sweden, the Netherlands, and Austria - cuts of several hundred billion euros compared to the Commission's draft. "Financial La-La-Land" Federal Chancellor Friedrich Merz (CDU) sees "no basis for an agreement" yet. A "strong and sovereign Europe" needs "a fundamentally modernized and affordable multi-annual financial framework," Merz stated in Berlin on Saturday. He thanked the Irish Presidency for its "tireless effort" in difficult negotiations. "We are still far from an agreement," the Chancellor emphasized. A EU diplomat commented: "We urgently need more financial reality and less financial La-La-Land." Countries like France, Spain, and Poland, the so-called "frugals," are opposed to this, demanding a larger budget and particularly rejecting cuts to agricultural subsidies. France, as the second-largest European economy, argues that the EU needs sufficient funds given the upcoming challenges. An agreement is still aimed for by the end of the year - not least because of the Presidency election in France next spring. However, the early election in Spain in November is likely to make achieving this already ambitious goal even more difficult. wa/jj (dpa, rtr, afp)