EU's long-term budget: Parliament refuses to lower its ambitions

TALLINN - The European Parliament debated the current state of negotiations on the EU's next Multiannual Financial Framework with representatives from the Commission and the Council in a plenary session. Parliament's rapporteur Siegfried Mureşan from Romania warned that Parliament will not agree to a smaller budget, as it would weaken Europe in the coming years and prevent the EU from achieving its goals, responding to crises, or dealing with unexpected events.

Mureșan reiterated that the Commission's initial budget proposal is at the same level as the outgoing budget period, despite growing challenges. The Commission's proposal for 2028-2034 amounts to 1.15 percent of the member states' Gross National Income (GNI), whereas the current Multiannual Financial Framework was 1.14 percent of GNI at the time of its presentation. "Reducing the budget would only weaken Europe," he stressed. Mureșan also emphasized that while member states' budgets have grown by 68 percent in absolute terms over the last seven years, the EU as a whole has not kept pace, meaning the perception of an ever-expanding EU budget is false.

Parliament's second rapporteur, Carla Tavares from Portugal, stated that Europe is no longer facing temporary crises but structural problems, and the EU's response must also be structural and far-sighted. Speaking on Parliament's position, she said: "We are not just demanding more money. We are demanding a budget that is consistent with the commitments assigned to the EU."

Tavares noted that while everyone generally agrees that Europe needs to spend more money to address priority issues in areas like competitiveness, energy independence, security, climate, education, and healthcare, some member states in the Council are still demanding a smaller budget and refusing new own resources. "It's as if we want a first-class Europe, but with a second-class budget! This isn't ambition; it's a contradiction. And it harms Europeans," she warned. "We don't have a choice between a cheap Europe or an expensive Europe. The choice is between an underfunded Europe mired in endless crises, or a Europe capable of anticipating problems, investing in its people and businesses, and shaping its own future," she concluded.

Most representatives of the political groups in the plenary also expressed support for Parliament's position, which was adopted in April 2026. In it, Parliament calls for a strong, realistic, and forward-looking budget that aligns with the EU's goals and is funded by new sources. The EU's long-term budget must serve the interests of its citizens, reduce inequality, and ensure sufficient funding for all key policy areas, including agriculture, regional development, cohesion, and social affairs. At the same time, the transparency and accountability of budget use must be improved.

Ireland's Minister for European Affairs, Thomas Byrne, confirmed that the Irish Presidency of the EU will present a new draft negotiating position for the Council on Saturday. "We want to move a step closer to an agreement, but a compromise will require difficult decisions," he said.

Piotr Serafin, the EU Commissioner for Budget, Anti-Fraud, and Public Administration, stressed that some countries continue to view the EU budget like an accountant's balance sheet: how much I put in versus how much I get out. "This approach was mistaken in the past, but with a modern budget, it doesn't work at all," Serafin said. He noted that the EU budget addresses common problems that member states cannot manage alone or that would cost everyone more if tackled separately.

Parliament adopted its position on the new Multiannual Financial Framework for 2028-2034 in April 2026. In it, Parliament called for an increase of approximately 10 percent to the budget originally proposed by the Commission to invest in key priorities such as defense and security, competitiveness, and cohesion and agricultural policies. Parliament also wanted to see new revenue streams to strengthen the EU budget, including a digital services tax, an online gambling tax, an extension of the Carbon Border Adjustment Mechanism (CBAM), and a crypto-asset income tax. More than 93 percent of the EU budget goes directly to EU programs that support people and projects in all member states, with less than seven percent spent on administration.

Member states, however, according to the Council's initial position, want to reduce the Commission's proposed budget by two percent. The Irish Presidency of the Council plans to release its new negotiating package on Saturday, October 10. The EU's next long-term budget requires the approval of both the Council and the Parliament.