Ireland brokers EU budget deal as defence spending splits Europe

European Union leaders are negotiating a new long-term budget, with the initial €1.76 trillion proposal reduced to €1.62 trillion, as member states clash over defence spending and traditional funds. Germany leads a group of net contributors, including the Netherlands and Denmark, seeking deeper cuts to the budget, particularly to farm subsidies and cohesion funds, to prioritise defence and security spending. Spain, Italy, and Poland are resisting these cuts to protect traditional funding. Ireland, holding the EU presidency, is acting as a neutral dealmaker, with leaders aiming to reach an agreement by December, though negotiations could extend into next year.