Ireland Proposes €1.62 Trillion EU Budget Through 2034

Ireland’s presidency of the Council of the European Union has proposed a €1.62 trillion budget for 2028-2034, seeking to narrow the European Commission’s plan while preserving an increase over current spending.

The proposal, circulated Oct. 10, would raise the European Union’s seven-year spending framework by 30%. It represents 1.16% of EU gross national income, or 1.05% excluding repayment of common debt issued under the Next Generation EU program.

The plan includes €141 billion in savings, or 8%, compared with the Commission proposal.

Sweden’s Minister for EU Affairs Jessica Rosencrantz said the proposed increase was unaffordable and that the budget’s overall size must be reduced significantly. She also said the plan would require several hundred billion euros in additional cuts.

The Multiannual Financial Framework is the EU’s seven-year spending plan. It covers negotiations over competitiveness, research, security and defense, along with agricultural and regional-cohesion programs. Member states must agree on the framework, which also requires approval from the European Parliament.

Ireland’s Minister of State for European Affairs and Defense Thomas Byrne said the negotiations had not yet reached the stage of establishing a basis for agreement.

European Council President António Costa said a timely agreement on the next framework would provide economies with “the predictability and stability they need in an unstable and unpredictable world.”

EU leaders are scheduled to discuss the proposal in Brussels on Oct. 15-16. The stated objective is to reach an agreement by the end of 2026.