Multiannual Budget: More Defense and Economy, Less Agriculture

Germany, the Netherlands, Denmark, Sweden, Austria, and Finland have made it clear that the European Commission's budget proposal of nearly 2 trillion euros for 2028-2034 is too high for them. Without a significant reduction, they threaten to withhold their approval. Opposing them are seventeen other countries, including Italy, Spain, and Poland, who oppose excessive cuts.

Agriculture

This means the discussion is no longer only about how much the EU can spend in the next seven years. Equally important is what the money should be spent on, such as strengthening the economy and European Defense. Agricultural subsidies and support for regions are particularly at risk of becoming casualties of a major budget shift.

The Common Agricultural Policy is a major point of contention. The Commission wants to consolidate agricultural aid and regional spending into broader, smaller national and regional budgets. Opponents fear that this will weaken the protection of existing funding streams for farmers and regions.

More Defense

The six countries want more emphasis on European security and Defense, innovative companies, and strengthening European competitiveness. This creates a fundamental division: financing new priorities by reducing existing expenditures, or increasing contributions from EU countries or raising taxes.

The European Parliament also favors increased spending. This does not yet make a compromise among the 27 EU countries sufficient. Ultimately, the European Parliament must also agree, and the political situation there is complicated.

Moreover, the Parliament itself is divided over reducing or dismantling agricultural subsidies. Political groups and parliamentary committees disagree on whether agricultural policy should remain independent or become part of smaller national funds. This threatens, alongside the conflict among the 27 governments, a second budget battle with the Parliament.