EU budget talks at impasse as member states split over 2028-2034 plan
European Union member states are deeply divided over the next seven-year budget, with diplomats saying negotiations are at an impasse and casting doubt on the goal of reaching a unanimous agreement by the end of 2026. The Irish presidency's latest proposal for the 2028-2034 Multiannual Financial Framework has failed to satisfy key factions. The "frugal" countries, led by Germany, demand further cuts to the €1,826 billion proposal, while the "Friends of Cohesion" group of 17 southern and eastern states insists on preserving funding for traditional and new priorities. The Irish plan has reduced the Commission's original proposal by €159 billion, cutting into new priority areas like competitiveness and global Europe. Belgium holds a middle position, opposing higher national contributions but resisting deep cuts to cohesion and agricultural policies. The debate over new "own resources" remains unresolved, with member states reluctant to support new EU-level taxes. If no deal is reached by December, negotiations could be complicated by upcoming elections in France, Italy, and Poland in 2027.