An agreement on a new European budget is still far away. The leaders of the 27 EU countries tried last night during the European summit in Brussels to come closer together, but have not yet succeeded.
"We face very difficult negotiations," said German Chancellor Merz ahead of the talks. Every seven years, all EU countries must reach an agreement on a new budget. At the moment, they are negotiating the EU budget for the period from 2028 to 2034. The negotiations leading up to such a deal are always tough.
Richer countries such as the Netherlands, Germany, and Sweden contribute more money than they receive back from the EU in subsidies and funds. These countries, the net contributors, therefore want the budget not to become too large, because then the costs increase. Germany leads this group.
Cutbacks or investments?
Opposite them is a group of seventeen countries that want a larger budget, because then more money is available for, among other things, their farmers and to develop disadvantaged regions. This group is led by Italy and Romania.
Several proposals for a new budget have already been put on the table. The European Commission kicked off the discussion in July with a proposal for a budget of just under 2000 billion euros for a period of seven years. Meanwhile, after fierce opposition from the net contributors, the countries are discussing a variant that is about 150 billion euros lower.
But that is still too much, says Prime Minister Jetten. "The current proposal is not good enough to reach an agreement. The budget must be smaller and more modern to be ready for the future."
Negotiating under high tension
The discussion is under more time pressure than usual. Several countries hope to reach a political agreement this year. The President of the European Council, Antonio Costa, has also expressed that wish. As president, Costa has the role of guiding the talks between the European leaders.
The time pressure is the result of a year full of elections that Europe faces. Between now and the end of 2027, Europeans in four of the five largest EU countries (Spain, France, Italy, and Poland) will go to the polls.
Especially the French presidential elections could make the negotiations much more difficult than they already are. Marine Le Pen, who is at the top of the French polls, campaigns for a much lower financial contribution from France to the EU. To emphasize that message, she held a special press conference in Brussels earlier this week.
Tech or agriculture?
The countries are not only arguing about the size of the budget but also about how they want to spend the money. The group of Germany and the Netherlands advocates a 'modern budget,' as they call it. More money should go to innovation, defense, tech, and the energy transition and less to agriculture and poorer regions.
The proposal currently on the table is indeed smaller than the original plan of the European Commission. But that reduction is partly in the areas that the Netherlands finds important, such as research and innovation.
"We are two and a half months before the end of the year still very far apart," says Merz. "But that does not mean that we cannot come up with solutions in the coming months."
Negotiation marathon
The German is aiming for an agreement at the European summit on December 17. If the leaders really want to reach consensus then, that summit could last several days and nights. "I will pack a few extra shirts before that summit," said the German Chancellor.
French President Macron is also putting pressure on the negotiations. France wants a deal before the end of the year because negotiating over EU billions during the French presidential elections would be too sensitive.
But not all leaders feel the need to hurry. "We will not sign an agreement that is not favorable just to meet the deadline," said Italian Prime Minister Meloni earlier this week. Ultimately, all countries must agree on the new budget. On November 13, the EU leaders will continue their talks, then in Dublin.