# EU Leaders Push Deep Budget Cuts, Joint Borrowing Normal

> EU leaders propose slashing EU budget by €160bn while expanding joint borrowing to €800bn.
- Title: EU Leaders Push Deep Budget Cuts, Joint Borrowing Normal
- Summary: 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…
- Keywords: budget, joint borrowing, eu commission, irish presidency, eu borrowing, eu budget cuts, eu common borrowing, eu crisis mechanism, ukraine support, safe defence loan, ng eu, Leaders
- Source: EUobserver — https://euobserver.com/242658/leaders-eye-deep-eu-budget-cuts-while-long-term-joint-borrowing-becomes-the-new-normal
- Published: 2026-10-14T11:21:07+00:00
- Read time: 1 min
- Topics: eu, budget, joint borrowing, eu commission, irish presidency, eu borrowing, eu budget cuts, eu common borrowing, eu crisis mechanism, ukraine support, safe defence loan, ng eu
## 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.
## Key takeaway

EU leaders cut next budget by €160bn but keep joint borrowing at €800bn to address shared challenges.