Emma Hickey reports from Brussels
EUROPEAN LEADERS ARE at a crossroads as they continue discussions on the EU’s long-term budget, the multiannual financial framework (MFF).
The new MFF will be in place for the seven years encompassing 2028 to 2034.
The budget has been in the works since July 2025. It won’t be finalised until the end of this year, and it will take the year until it comes into effect from 2028 to legislate for it and put it into motion.
The European Commission initially proposed a budget for the MFF at €2 trillion, which was immediately shot down as being too costly. A negotiating box was devised by the Dutch in 2025.
Cyprus, which is coming to the end of its EU presidency, came back with a negotiating box with a suggested 2% cut last week.
Divisions have emerged amongst EU leaders on the extent of the spending encompassed within the MFF. Two camps – the frugal and the spenders – are pushing different approaches to the budget.
Leading the frugal is the EU’s largest net-contributor Germany. Its chancellor Friedrich Merz was outspoken upon arrival this morning that Europe should not be borrowing money to bump up its budget.
“The proposal currently on the table is clearly too high. The figures have to come down,” Merz said.
Heading up the other camp is French president Emmanuel Macron. France follows Germany and is the second largest net-contributor. Differing from Merz, Macron believes in common debt across the union, and sees splashing out on the MFF as Europe’s chance to get ahead in the technology and defence fields.
Ireland has largely stayed out of disagreements over the size and scale of the budget. As a net contributor, it is seen as fiscally responsible, if not one of the ‘frugal’ nations.
Its main concern is around changes to the common agricultural policy (CAP). CAP provides income support to farmers, market measures, and rural development measures.
The upcoming MFF is to be simplified into four sectors, rather than the current seven.
There is also the introduction of National and Regional Partnership Plans (NRPPs), which would combine sectors into single pots with shared funding at a country-level, rather than funding earmarked for one specific sector – such as the CAP being combined with cohesion policy, fisheries and maritime policy, as well as migration and internal security.
It’s been estimated that as the proposals stand, it could lead to a 20% reduction is funding for farming.
Speaking to reporters in Brussels today, Taoiseach Micheál Martin said “we will obviously be in listening mode as coming into the presidency, to see the response to the Cypriot negotiating box, and see where we take it from there.”
He said regarding the CAP, “it’s quite clear that a number of member states are anxious to improve somewhat on the draft budget proposals around agriculture, but it will be very challenging because there are a lot of competing demands.
“The bottom line is that there are some who believe the budget is too high as it is, not withstanding the Cypriots reducing it to some degree in its negotiating box.”
He said there are other pressures in other parts of the budget, saying it will be “very, very difficult to resolve”.
The final budget must be approved by the EU parliament and member states.
Additional reporting by AFP