The broad pro-European majority of the European Parliament —made up of the European People's Party (EPP), Socialists and Democrats (S&D), Renew Europe, and Greens— has rejected this Monday the proposal of the Irish presidency of the EU Council for the financial framework 2028-2034. The Dublin plan implies a cut of 8% compared to the original project of the European Commission, and the groups have warned that they will not give their approval to accounts that "weaken the Union's ability to act."
"We want to make it clear from the outset that we reject the proposal presented by the Irish presidency, which cannot constitute a basis for the Parliament's consent to the next multiannual financial framework," the leaders of the four political families have stated in a joint declaration released a few days before the European summit on October 15 and 16, where the Twenty-Seven will again examine, among other topics, the future community budget.
The leaders of the groups have expressed their "deep dismay" at the latest negotiation document sent on Saturday by Dublin, understanding that the proposed cuts "endanger the Union's ability to respond sustainably to future challenges."
The Irish proposal represents, in practice, a reduction of about 141 billion euros compared to the initial plan from Brussels, so that the total volume of the accounts would be 1.62 trillion euros, compared to the 1.76 trillion proposed by the Commission. According to the groups' calculations, the adjustment would imply a loss of real value of the budget of 161 billion euros, equivalent to 10%, compared to the current framework when taking into account inflation and economic growth.
"A smaller multiannual financial framework will not make Europe's challenges disappear. It will only shift a greater part of the financial burden to the national level, where many of those same challenges will still have to be faced," the groups warn, also questioning that governments sell these cuts as an exercise in "budgetary discipline."
Cuts in competitiveness, security, and external action
Among the most controversial points of the text, the MEPs denounce the cuts in the European Competitiveness Fund and in Horizon Europe, the major EU program for research and innovation. They also criticize the reductions in funding for strategic infrastructures and military mobility, as well as in the EU Civil Protection Mechanism, key to strengthening the response to wildfires and other climate disasters, in addition to the adjustments in the Global Europe instrument, which channels a good part of the international cooperation and enlargement funds.
"How can Europe reduce its competitiveness gap while cutting the European Competitiveness Fund by 13% and Horizon Europe by almost 10%? How can we strengthen our security while reducing funding for strategic infrastructures and military mobility by 14%?", the signatories ask, demanding that the heads of State and Government fully address these issues at their next meeting.
They demand new sources of income
In addition to rejecting the cuts, the four forces condition their support for the next financial framework on a pact for new own resources for the EU. They specifically support the proposals from the European Parliament to introduce a levy on online betting and gambling services, a contribution associated with crypto-assets, and a digital tax aimed at large technology platforms.
"If the Member States want to finance our common priorities and at the same time limit the pressure on national budgets, the answer is to agree on new European sources of income," the groups maintain.
They also warn that if an agreement on these new resources is not reached, they will not support the approval of the next financial framework, which requires the consent of the Eurochamber by absolute majority.
Brussels regrets the cuts and calls for more ambition
The European Commission has also expressed its discontent with the "significant reduction" of the overall budget volume proposed by the Irish presidency and has warned that substantial cuts could "undermine the fundamental priorities" agreed upon by the Union. Nevertheless, the community executive reiterates its willingness to "work constructively" with the Member States and the Parliament to reach an agreement.
"We regret the significant reduction in the overall size of the budget. As President Von der Leyen pointed out in her speech in Strasbourg last week, the large cuts risk undermining the fundamental priorities we have collectively agreed upon," indicated the community spokesperson for Budget, Balazs Ujvari, at the daily press conference of the Commission.
Brussels also expresses its concern over the "substantial reduction of flexibility" in future accounts, especially due to adjustments in the instruments designed to respond to unforeseen needs and crises, considering that having room for maneuver is crucial to manage the challenges that may arise in the next seven years. "We need a budget that lives up to Europe's ambitions and provides us with the means to make them a reality," he added.
The community executive also criticizes that the Irish plan "weakens the link" between national and regional plans and the country-specific recommendations, which, in its view, would undermine the European budget's capacity to drive reforms, arguing that investment and reforms must progress in parallel.
In the revenue chapter, the Commission celebrates that the five proposals for new own resources it has put on the table continue to be part of the negotiation, but warns that keeping them alive "is not enough" and calls for concrete steps towards a pact that allows financing common priorities without increasing the burden on national coffers.
"We are not at all satisfied with these cuts. We have a series of collective objectives and priorities set for the coming years, and it is important that we have the necessary means to fulfill them," the spokesperson insisted when asked about the demands of countries that require even deeper cuts.