The adjustments now proposed by Brussels aim to reassure agricultural organizations and regional authorities and to ease political tensions surrounding the European rural policy. Farmers are protesting against the merging of the rural fund of agricultural policy with other funds, such as the extensive Cohesion Fund.
This bundling of subsidy streams into future new national pots would not only mean a cut of several hundred million euros in agricultural spending but would also transfer some of the European Parliament’s co-decision powers to national governments.
The European Commission is now willing to adjust its proposal for the multiannual financial framework, provided the EU Councils agree, according to Von der Leyen as a strict condition. According to Brussels insiders, this remains highly uncertain. Many EU countries actually welcome the return of some control over EU subsidies to their capitals.
To calm tensions, Commission President Ursula von der Leyen is now proposing a ‘rural objective.’ EU countries would be required to spend at least ten percent of their new national programs on agriculture and rural development.
Additionally, regional authorities must have greater input into how European funds are spent. The European Parliament has long pushed for stronger oversight of EU spending, fearing being sidelined in future budget decisions.
Despite the currently proposed adjustments, many EU countries remain hesitant. Diplomats in the EU Council emphasized that only national governments can change budgetary procedures. For the Parliament, the concessions go further than expected, but many members still consider them insufficient.
The concessions are detailed in a letter Von der Leyen sent last weekend to Parliament President Roberta Metsola and Danish Prime Minister Mette Frederiksen. The heads of the three EU institutions (Commission, Parliament, and Council) will discuss rising tensions over an increasing number of crucial EU dossiers on Monday afternoon.
This week, during the plenary session in Brussels (Wednesday and Thursday), the European Parliament will also address the proposed 2026 budget. It will come into effect in a few weeks, but Parliament’s groups still want amendments.
Moreover, EU politicians must again decide on the simplification (read: abolition) of procedures and EU regulations to reduce administrative burdens on businesses. This Omnibus-1 operation was unexpectedly rejected last month by a narrow majority of dissenting Social Democrats, Liberals, and Greens, to the great displeasure of the EU Council and the Commission.
As a result, the EPP group threatens this week to call on parliamentary support from conservative, nationalist, and far-right groups to roll back a number of (in their view) unworkable sustainability criteria from the Green Deal. Weakening EU climate policy and ending production of new petrol cars also risk pushing the EPP ‘to the right.’