EU Leaders Grapple with €2 Trillion Budget as Multiannual Financial Framework Negotiations Intensify

On 23–24 April, EU leaders met informally in Nicosia and Agia Napa to begin talks on the 2028-2034 Multiannual Financial Framework (MFF). Discussions focused on the budget’s size, new “own-resource” revenues and the handling of NextGenerationEU debt. The summit set the agenda for inter-governmental negotiations that must finish by end-2026.

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The 2021-2027 MFF totals €1.2 trillion (?1 % of EU GNI). The Commission’s July 2025 proposal lifts the ceiling to nearly €2 trillion – a 59 % rise – and would raise national contributions 81 % to €235 billion. It also targets €66 billion a year from new own-resources. The Parliament’s interim draft caps the budget at €1.78 trillion (2025-constant), or €2.01 trillion in current prices, with NextGenerationEU debt adding 0.11 % of GNI.

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Commission President Ursula von der Leyen said new own-resources are essential to avoid higher contributions or lower spending. Dutch Prime Minister Rob Jetten warned the proposed size would “explode” the Netherlands’ share and demanded cuts. German Chancellor Friedrich Merz argued a large increase clashes with fiscal consolidation. European Parliament President Roberta Metsola called for a “new budget fit for purpose” and fresh revenue. Italian Foreign Minister Antonio Tajani urged extending the defence-spending escape clause to energy costs.

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The Netherlands and Germany rejected the corporate turnover levy as double taxation and urged a smaller budget. European Court of Auditors President Tony Murphy warned the reforms may not improve spending and pose financial-management risks. Critics note a shortfall if new own-resources are not approved, potentially forcing higher contributions or reduced programmes.

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Sources disagree on the final figure: the Commission seeks nearly €2 trillion, the Parliament’s interim draft caps it at €1.78 trillion (2025-constant). Agreement on own-resource composition remains open, with opposition to the carbon-border adjustment and corporate levy. Integration of NextGenerationEU debt into the MFF is still unresolved.

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• “Own resources are indispensable,” — Ursula von der Leyen, Commission President

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• “size of the budget needs to substantially go down.” — Rob Jetten, Dutch Prime Minister

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• “At a time when nearly all member states are undertaking the most rigorous fiscal consolidation efforts at home, a massive increase in the EU budget, as proposed by the Commission, does not fit the picture,” — Friedrich Merz, German Chancellor

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• “Many of the proposed changes do not guarantee better spending in the future” — Tony Murphy, President, European Court of Auditors

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• “We are now at the point where commitments need to turn into delivery.” — Roberta Metsola, European Parliament President

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The European Parliament will vote on its position on 28-29 April, after which member states will shape a “negobox” for the June Council summit. Cyprus President Nikos Christodoulides will present a negotiating document then. Leaders aim to conclude the MFF by end-2026, before elections in France, Italy, Spain and Poland.

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