Overview
- The Cypriot Council presidency published a negotiating box that reduces the European Commission’s 2028–2034 budget ask by 2 percent, about €32.8 billion, as a starting point for talks.
- Wealthier 'frugal' countries led by the Netherlands and Germany immediately rejected the text as too close to the Commission’s original plan and urged much deeper cuts.
- A southern and eastern bloc led by Italy, Spain and Poland welcomed the proposal because it largely protects agricultural subsidies and regional cohesion payments.
- The presidency’s draft applies its biggest reductions to the European Competitiveness Fund and the Global Europe Fund, shifting pressure away from traditional payouts and toward contested strategic priorities.
- EU leaders will debate the text at a Brussels summit next week and aim for a deal by December, with negotiations likely to reshape both the overall size of the budget and its revenue plans and with electoral calendars in several member states raising the political stakes.