The EU’s 27 countries are racing to finalize a budget agreement between themselves by December, in case French elections slated for April 2027 usher in a far-right president who might want to scupper any deal. The budget, known as the multiannual financial framework, governs the bloc’s central spending, from agricultural subsidies to road-building to cultural projects.
“These are the first figures put on the table, we have been very pragmatic and very realistic as to what that means, but it is a basis for negotiations,” said Marilena Raouna, Cyprus’ deputy minister for European affairs.
Cyprus’ amendments sparked an opposition campaign by a group of northern European countries that favor a substantially smaller cashpot.
But a rival bloc of southern and eastern countries supporting a bigger budget led by Italy, Spain and Poland have broadly welcomed Nicosia’s changes — especially the shielding of farmers’ subsidies and regional payouts from cuts.
This sets up tensions ahead of a summit of EU leaders next Friday that will focus on the size of the budget. While the Cypriot proposal will guide the next phase of the negotiations, there is still plenty of time for critical countries to overhaul the plan. Ireland takes over the presidency from July until the end of the year and will be tasked with bringing the EU’s 27 countries close to a landing zone.
Cyprus’ balancing act
The Commission proposal is worth nearly €2 trillion, including €166 billion in Covid-era debt repayments that have not been amended in the negobox.