Von der Leyen warns against EU budget cuts
European Commission President Ursula von der Leyen cautioned against cuts to the EU’s next seven-year budget in a rebuke to Germany’s calls to dramatically slash spending.
During a speech in the European Parliament in Strasbourg on Tuesday, von der Leyen said that reducing the size of the EU’s common cash pot would undermine critical EU-wide priorities such as competitiveness and energy autonomy.
“I would like to caution against large cuts. It would risk cutting deep into critical priorities that we all together have agreed on,” von der Leyen told MEPs.
The warning comes days before the Irish presidency of the Council of the EU, which is steering the budget talks, is expected to put forward a budget negotiating document with new figures.
Von der Leyen had previously hailed the Commission’s budget proposal for 2028-2034 as “the most ambitious ever proposed.” But Tuesday, as negotiations among governments enter crunch time, she struck a more cautious note.
In a message to Berlin, von der Leyen recalled that the Commission’s budget proposal represents 1.26% of the European Union’s gross national income — a relatively small increase from the current seven-year cash pot.
She also underscored the need to approve “a significant package of new own resources,” which are EU-wide taxes to finance the budget and reduce national contributions to Brussels.
The bloc’s governments are racing to reach an agreement by the end of the year, before elections in France, Italy and Poland in 2027 threaten to disrupt the negotiations.
Despite the looming deadline, EU leaders are still far apart over the size of the new budget.
Germany and its allies in Northern Europe have pressured Dublin to make cuts worth hundreds of billions of euros across the board.
But 17 EU countries from Southern and Eastern Europe — led by Italy and Romania — are pushing in the opposite direction. They asked to preserve farmers’ subsidies and regional payouts in a joint letter last week.
In a thinly veiled threat on Monday, German Chancellor Friedrich Merz said that “having no new financial framework is by far the most financially advantageous solution for Germany.”
However, he added that such a scenario would restrict the EU’s ability to act and renewed calls to end the negotiations by the end of the year.
Several European officials believe that Dublin will propose budget cuts exceeding €100 billion. The proposal is expected to be put forward Saturday and be discussed by EU ambassadors Sunday.
