Germany and its allies reject Ireland’s plan to reduce the EU budget, deeming the cuts insufficient

Germany and the other states in the “Frugal Four” group rejected on Saturday Ireland’s proposal for the European Union’s next seven-year budget, considering the reduction of approximately 8% for the 2028–2034 period insufficient. Dublin, which is coordinating the negotiations as part of the EU Council presidency, sought to bring the member states’ positions closer together, but the plan was immediately criticized by German Chancellor Friedrich Merz.

The proposal provides for a reduction of 159 billion euros compared with the nearly 2,000-billion-euro draft presented by the European Commission. Germany, Sweden, Denmark, the Netherlands, Finland and Austria, which together contribute approximately 40% of the EU budget, are calling for more substantial cuts.

Meanwhile, the states in the “Friends of Cohesion” group support maintaining funds for agriculture and regional development, which account for nearly half of the budget. Ireland protected these allocations and focused the cuts on competitiveness, defense and development aid.

Negotiations will continue at next week’s EU leaders’ summit. The member states want to reach an agreement by the end of the year, ahead of the elections in France, Italy and Poland scheduled for 2027.

However, the Dutch Finance Minister warned that, at the current pace, an agreement is unlikely.