Frugal countries pile on pressure to shrink EU budget

Published on 29/09/2026 - 11:09 GMT+2•Updated 11:11

The leaders of six "frugal" net contributors to the EU budget have written to the Irish presidency, stepping up their push for a lower overall figure in its upcoming compromise proposal.

The letter, dated 28 September and seen by Euronews, is the latest attempt by the frugal camp to shrink the EU's next long-term budget, the Multiannual Financial Framework (MFF). Talks have entered a crunch phase, with a deal targeted by the end of the year.

"We are now entering the decisive phase of the negotiations, in which we must determine the overall size of the MFF and decide which areas should be prioritised for funding," the document reads.

It is signed by German Chancellor Friedrich Merz, Austrian Chancellor Christian Stocker and Prime Ministers Mette Frederiksen of Denmark, Rob Jetten of the Netherlands, Petteri Orpo of Finland and Ulf Kristersson of Sweden.

It is addressed to Irish Prime Minister Micheál Martin, whose country holds the rotating presidency of the Council of the European Union. Dublin is due to present a new compromise text in the coming days, ahead of a European Council summit on 15-16 October.

"If the Irish negotiating box is to serve as the basis for further discussions, it must set out an overall volume that can realistically be financed by those who carry the main financial burden. This issue cannot be postponed," the letter reads.

In June, the Cypriot presidency proposed a 2% cut to the European Commission's proposed MFF for 2028-2034, worth nearly €2 trillion. The six countries considered the reduction far too small to win their support.

"Almost every EU member state is making painful efforts to consolidate its public finances. There will be no European sovereignty without sound public finances," the letter continues. "The European Commission has proposed a nominal increase of around 60%. That is simply not realistic."

The frugal countries are also pushing to change what the money is spent on. They want to shift funding away from traditional policies such as cohesion and agriculture towards "modern" priorities.

"The funding should be focused on common investment in security and defence, competitiveness, innovation and the fight against irregular migration," the text says.

The letter repeats the message the six leaders delivered in Berlin on 27 August, when they asked for cuts of "several hundred billion euros" without settling on a precise figure.

"We would like to reiterate that the MFF negotiations are characterised by a fundamental asymmetry: our six countries alone finance almost 40% of all member states' contributions," the letter reads.

They also criticised as "out of step with the times" the Commission's plan to increase staffing at the EU institutions while most public administrations face cuts, a view shared by most member states.

"The Commission's proposal will need to be reduced by several hundred billion euros. All headings will have to contribute to these savings," the letter adds.