EU Institutions Confront Budget Cuts as Member States Seek Additional Funding

Wednesday, September 16, 2026

SAEDNEWS: Most European Union capitals want to reduce funding for the bloc’s civil service as part of negotiations over the EU’s next long-term budget, according to a document seen by Euronews.

EU Institutions Confront Budget Cuts as Member States Seek Additional Funding

According to Saednews, Member states are currently considering ways to reduce costs as part of a broader agreement that could see the budgets of the European Commission, European Parliament and Council of the EU cut.

EU countries are engaged in intense negotiations over the next Multiannual Financial Framework (MFF), the EU's budget for 2028–2034. On Wednesday, ambassadors will discuss possible compromise figures for the overall budget, which was initially set at around €2 trillion.

"A majority of member states saw Heading 4 [European Public Administration] as an area where reductions could be made," according to a note circulated ahead of a discussion among EU ambassadors on Wednesday and seen by Euronews.

According to the document, several European governments questioned "the justification of the proposed increase in staff levels contained in the Commission proposal while many member states are constraining expenditure and headcount in their own national civil services."

The appropriate size of the next EU budget remains a major point of disagreement among member states. Countries led by France and Spain are pushing for a more ambitious budget, while the so-called "frugal" countries, including Germany and the Netherlands, want to reduce it by "several hundred billion euros."

In June, the Cypriot rotating presidency of the EU Council presented a compromise proposal that would reduce the overall budget by 2%. The largest cuts would affect the Competitiveness Fund, which supports defense and industrial investments, and the Global Europe Fund, which finances development aid.

The current Irish presidency is now working on a new compromise proposal, which is expected in early October, ahead of another discussion at the European Council summit on October 15–16.

"What is your view on the volume of expenditure proposed by the current Negotiating Box and what do you see as the potential landing zone for these discussions?" the Irish government asked EU ambassadors in the note.

Regarding funding for National and Regional Partnership Plans, which provide EU support for poorer regions as well as agriculture and fisheries, the note says that this "is the most important priority for the majority of member states."

On the Competitiveness Fund, the presidency acknowledges broad support for its goal of strengthening Europe's research and defense industries, while noting that "there is a degree of openness by some to more moderated increases."

Support for EU enlargement, particularly assistance for Ukraine, is also considered a priority within the international aid programme.

According to the presidency note, the area where there appears to be the broadest consensus is the budget allocated to the EU institutions themselves. Many European capitals are already under pressure to reduce spending because of rising defense costs, higher energy prices and continued aid to Ukraine.

The European Commission is already undergoing a review that is expected to lead to an internal reorganization. These plans could be accompanied by a proposal on how to make a union of 30 or more member states function effectively, which is expected at the end of the month.

The European External Action Service is also facing pressure to reform and improve its effectiveness. The latest German-led proposal suggests that the EU's diplomatic service could be placed directly under the Commission's authority, with a significant presence of diplomats seconded from national governments.

Discussions on the EU's long-term budget will continue at a meeting of the General Affairs Council next week.