Ireland, as the half-yearly EU president, has made the proposal to cut the EU budget for the coming years. Ireland proposes to reduce it by 140 billion. There is much discussion about the upcoming seven-year budget. The Netherlands and five other countries believe that the European Commission wants too large a budget.
The European Commission had proposed a multiannual budget of 1.76 trillion euros (1760 billion). In a letter to EU president Ireland, the prime ministers of the Netherlands, Germany, Sweden, Denmark, Austria, and Finland urged to reduce the budget by hundreds of billions of euros.
The countries, who like to call themselves the frugal six, believe that less money should go to farmers and poorer regions in the EU. Traditionally, these receive about two-thirds of the budget. The countries advocate more investments in security, defense, economic competitiveness, innovation, and the fight against illegal migration.
In the Irish proposal, 3 percent is cut from the budget proposed by the Commission for, among others, agriculture, fisheries, and poorer regions. Under the heading of security, competitiveness, and prosperity, the Irish plan actually cuts 13 percent from the budget proposed by the Commission. This goes against the wishes of, among others, the Netherlands to allocate more money for these areas.
Inflation
The current budget, which runs until 2027, is 1.2 trillion euros. With the Irish proposal, the EU budget still rises by billions to 1.62 trillion. That is an increase of 30 percent, but 8 percent less than the European Commission's proposal.
This 30 percent increase does not mean that the European Commission can do much more with it, because inflation reduces the value of the money. Also, the European corona debts of 750 billion euros must be repaid by 2050 at the latest. Due to rising interest rates, the repayment has become more expensive.
The new proposal from the Irish is part of negotiations that have been ongoing for months and will be discussed next week. On Thursday and Friday, the European leaders will meet for an EU summit.
Netherlands against new proposal
The cabinet has already indicated that the new proposal is also insufficient. Minister Heinen of Finance says in a written response: "Even with this proposal, the Netherlands cannot agree. The Netherlands wants to see a much larger reduction of the budget together with other countries. We are therefore returning the proposal immediately."
Many other EU countries, including Spain and Italy, want to maintain support for agriculture and poorer regions and want more money to go there. Ultimately, all 27 member states must agree to the budget.