In the shadow of the intense disagreements over the amount and priorities of the new EU budget, Nikos Christodoulides and Antonio Costa are meeting today. The main topic of discussion will be the new Multiannual Financial Framework (MFF) for the period 2028 – 2034, for which the European family has been divided into two camps. That of the supporters of cohesion, which seeks a more ambitious budget, and that of the so-called "club of the thrifty", which insists on the logic of fiscal discipline.
The President of the European Council is expected to explore the intentions and boundaries of Cyprus, without ruling out the possibility of putting new proposals before the President. The aim of the European Council is to reach an agreement on the new MFF by the end of the year, both for political and substantive reasons. On the one hand, the EU cannot remain paralyzed and without funds in 2027 and on the other hand, the upcoming elections in four EU countries (France, Italy, Spain and Poland) de facto limit the possibilities for political compromises.
The amount of the budget is at the peak
The new budget is a big bet for the EU, as the new Multiannual Financial Framework (MFF) not only differentiates the ceiling of the EU budget, but also restructures its architecture, as the member states will henceforth prepare national plans with its priorities (National and Regional Partnership Plans – NRP Plan).
At the peak, however, is the budget ceiling, which the European Commission had set at €3 trillion. The "thrifty" Germany, the Netherlands, Sweden, Denmark, Finland and Austria are calling for cuts of up to 20% and indicate the EU's defense-security and the competitiveness of the European economy as priorities. On the other hand, the 15 member states, mainly in Central, Eastern and Southern Europe, the "friends of cohesion", defend funds that will ensure social cohesion, support economies with a GDP below 90% of the European average and set as priorities the strengthening of the Common Agricultural Policy, Fisheries and Immigration measures.
Step by step for compromise
During the Cypriot presidency, the foundation was laid for a proposal with an amount of funds that attempted to reconcile disagreements, keeping all member states at the negotiating table. In this context, a balanced and partly horizontal cut in expenditure by 2% was proposed. A proposal that, on the one hand, would satisfy voices in the Union that insist on reducing the budget and, on the other hand, would not displease the majority of states that embrace the logic of cohesion.
The proposal of the Cypriot presidency had succeeded not only in maintaining the cohesion funds proposed by the Commission, but also in rationalizing them in a positive way.
The baton was taken over by the Irish presidency, which at the end of the month is expected to present a new negotiating package and the amount of funds, with the aim of putting them before the October Summit.
