The groups of EPP, S&D, Renew, and Greens have jointly drafted a letter to Commission President Ursula von der Leyen. In it, they demand a substantial change to the draft EU multiannual budget for 2028–2034; otherwise, they will block the proposal at the upcoming plenary session in November or December.
At the heart of their resistance is the plan to merge existing European subsidy funds into the so-called National and Regional Partnership Plans (national envelopes). This would create a large national fund for each EU country bundling EU subsidies for rural policy, regional cohesion, agriculture & fisheries, and social policy.
The Commission and Parliament have until November 12 to find a compromise. On that day, MEPs are expected to adopt a resolution officially rejecting part of the seven-year budget unless their demands are met.
The European Commission has announced a significant policy shift to free up funds for more European defense industry and for modernization and expansion of the European economy. Brussels wants to become more self-reliant, independent from the United States and China.
The proposed total EU multiannual budget amounts to approximately 2 trillion euros – about 700 billion more than the current budget. Despite the increase, there are significant cuts to rural policy, with the agriculture budget falling from 387 to 295.7 billion euros.
In these plans, the rural fund is merged with the regional cohesion fund, which would then no longer be controlled by the European Parliament but by national governments.
Farmers’ organizations especially fear that national governments will gain more control over agricultural funds, causing European agricultural policy to become fragmented, forcing farmers in different countries to operate under unequal conditions. The letter calls this re-nationalization of the CAP a threat to the level playing field within the European agricultural market.
The four centrist groups demand that the CAP remain an independent policy area, with its own budget and clear European rules. However, it is uncertain whether Brussels will fully abandon the announced recalibration of agricultural funds, especially as it becomes clear that most EU countries agree with the proposed redistribution in the MFF multiannual budget.
The four groups, together holding 454 of the 720 seats in the European Parliament, also warn of a democratic deficit. According to them, the European Parliament is sidelined in the approval of national plans and in decisions on the redistribution of agricultural funds.
From a procedural standpoint, the conflict still partly unfolds behind the scenes, but next week the four ‘ruling’ groups in Strasbourg can take a final position. With their threat to block the proposal, the coalition groups are putting heavy pressure on the European Commission.
Budget Commissioner Piotr Serafin has meanwhile hinted that the Commission is willing to compromise, 'provided it is legally feasible.' He refers to the fact that EU countries at the government level have already agreed to the shift of agricultural funds to the defense industry. Many ministers also see the Cohesion billions coming more under their control as a positive development.