From EUobserver · · 1m 10s
EU Leaders Push Deep Budget Cuts, Joint Borrowing Normal
EU leaders propose slashing EU budget by €160bn while expanding joint borrowing to €800bn.
In brief
EU leaders propose slashing EU budget by €160bn while expanding joint borrowing to €800bn. EU leaders cut next budget by €160bn but keep joint borrowing at €800bn to address shared challenges. Originally reported by EUobserver.
Irish Budget Proposal
The Irish presidency proposed cutting €160bn from the EU’s next seven-year budget.
Deep Cuts Targeted
Competitiveness (€75bn), external action (€38bn), and administration costs (€10bn) face largest reductions.
Borrowing Programs Unchanged
The negobox keeps all three borrowing programs: Catalyst Europe (€150bn), crisis mechanism (€395bn), and Ukraine support (€100bn).
Joint Borrowing Stays High
Joint borrowing could reach €800bn, up from €780bn under the Commission’s proposal.
Budget Too Small for Challenges
The budget is too small for Europe’s shared challenges like Ukraine, rearmament, and competitiveness.
Frugal Six vs Friends of Cohesion
Net contributors (Frugal Six) want deep cuts and oppose new borrowing; Friends of Cohesion support joint borrowing.
Ukraine Support Tight
Ukraine support is capped at €100bn, but disbursements are accelerating.
Defence Borrowing Shortfall
SAFE, the EU’s defence loan scheme, is insufficient for rearmament needs.
France’s Borrowing Risk
France’s bond yields hit a 24-year high, showing borrowing risks.
The main idea
EU leaders cut next budget by €160bn but keep joint borrowing at €800bn to address shared challenges.
