This significant reorientation of European responsibilities for the coming years will lead to billions in cuts, to free up more funds to support Ukraine in the war against the Russian invasion. Strengthening the European economy itself and building up a domestic defense industry is also necessary, and the EU countries want to become less dependent on imports from non-EU countries (namely Russia, China, and the USA).
The meeting circuit starting now in Brussels may last about two years. Not only the sector ministers of the EU countries have a say over the tasks the EU Commissioners must undertake, but also the political groups in the European Parliament. Ultimately, the heads of government and state of the EU countries must approve it.
The (outgoing) Dutch Minister of Finance Heinen was first to present a negotiating position: that the Netherlands opposes the current proposal. In an interview with the Financial Times, he called the multiannual budget ‘dead on arrival.’ Heinen communicated this to the EU finance ministers who met last week in Copenhagen after the summer recess.
The negotiations over the new European multiannual budget not only determine the financial direction of the EU but also the future of agricultural policy. During the meeting of agriculture ministers on Monday and Tuesday, the proposed changes raised many questions.
The agriculture ministers for the first time considered the combination of a new agricultural policy and a new (much lower) agricultural budget. Starting in 2028, the European Commission wants to place agricultural funding into one large fund that also finances other policy areas. For income support to farmers, at least €293.7 billion is reserved. This amount is fixed, but countries will have more freedom to allocate the funds themselves.
This plan met resistance. Many agricultural ministers want to maintain the existing structure, with two separate funding streams: direct payments to farmers and separate programs for rural development. They fear that agriculture will have to compete with other expenditures, which would make farmers less certain.
The Danish chair of the agriculture council emphasized that the EU actually needs simpler policies, focusing on young farmers, food security, and greening. New discussions on this will arise in the coming months, not only among agriculture ministers but also their colleagues from Environment, Defense, Finance, and even the premiers and presidents of the EU countries.
On Thursday, a broad consultation will be held in Brussels between members of the Agriculture Committee of the European Parliament, together with Agriculture Commissioner Christoph Hansen and the current EU presidency Denmark. European agricultural organizations will also provide their feedback on the proposal for a new (more limited) European agricultural and food policy for the 2028–2035 period.