Cuts totalling €141 billion — equivalent to 8% of the European Commission’s original proposal — are outlined in the revised compromise proposal put forward by the Irish Presidency for the EU’s Multiannual Financial Framework (MFF) covering the period 2028-2034. The proposal aims to bridge the gaps between member states ahead of the European Council summit scheduled for 15-16 October in Brussels.
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New budget set at €1.622 trillion
The Irish Presidency’s proposal sets the EU budget for the 2028-2034 period at approximately €1.622 trillion (in constant 2025 prices), representing 1.16% of the EU’s Gross National Income (GNI) — down from 1.26% in the European Commission’s original proposal.
“I hope there will be an agreement by Christmas,” said Irish Minister for European Affairs and Defence, Thomas Byrne, who presented the revised MFF proposal today. He also stressed that “a timely agreement is essential so that citizens and the European economy can benefit from the new MFF from 1 January 2028,” expressing hope that today’s proposal would serve as a basis for continued negotiations aimed at reaching a deal among EU leaders by year’s end.
More specifically, Thomas Byrne stated that the Irish Presidency seeks to balance funding for new EU priorities — such as competitiveness, research, innovation, security and defence — with the preservation of traditional EU policies, including the Common Agricultural Policy and Cohesion Policy, while also taking into account the fiscal constraints of member states. He emphasised that nearly all programmes under the new MFF foresee increased funding compared to the current framework, with adjustments designed both to maintain new policy priorities and to protect the EU’s core policies.
In detail, according to the figures presented by Thomas Byrne:
- Cohesion, agriculture, fisheries and rural communities: €914 billion is allocated — an increase of 11% compared to the current MFF, but a reduction of 3% against the Commission’s original proposal. The Irish Presidency retains the national allocations as revised by the Cypriot Presidency, seeking to protect the Common Agricultural Policy and cohesion policy.
- Competitiveness, prosperity and security: €456 billion is allocated — an increase of 106% compared to the current MFF and a reduction of 13% against the Commission’s proposal. The European competitiveness funding package exceeds €400 billion, targeting investment growth, a stronger European economy and job creation.
- Global Europe — EU external action: €157 billion is allocated — an increase of 31% compared to the current MFF, but a reduction of 17% against the Commission’s proposal. This pillar retains recovery and reconstruction funds for Ukraine, as well as €25 billion earmarked exclusively for humanitarian aid.
- Administrative expenditure: €95 billion is allocated — an increase of 12% compared to the current MFF and a reduction of 8.8% against the Commission’s proposal.
Regarding Own Resources, Thomas Byrne emphasised that the Irish Presidency is proposing a package of new own resources that could generate €55 billion annually, with the aim of securing additional revenue to meet EU needs while easing pressure on national contributions. In this context, the Presidency is putting forward two significant changes. First, raising the share of Carbon Border Adjustment Mechanism (CBAM) revenues allocated to the EU budget from 75% to 90%. Second, proposing the phased implementation of the own resource linked to the Emissions Trading System (ETS).
The Irish minister acknowledged that the proposal cannot satisfy all the demands of member states, stressing that reaching an agreement requires compromise. In the coming days, negotiations will continue at the General Affairs Council and at the European Council on 15 and 16 October, at leaders’ level.
A political agreement by the end of 2026 is considered essential in order to complete the legislative process in 2027 and ensure the new budget enters into force without any interruption to European funding from 1 January 2028.
