The EU wants to cut the budget by 140 billion euros: what does this mean for Latvia?

Ireland, holding the presidency of the EU Council, has proposed to cut the next long-term budget of the European Union for 2028-2034 by approximately 140 billion euros. This was reported on Saturday, October 10, by AFP, citing the government in Dublin. The previously proposed long-term budget by the European Commission, amounting to 1.985 trillion euros, is thus planned to be reduced by eight percent. However, the opinions of the 27 member states of the community on the size of the next budget are divided, and the new concept is unlikely to help achieve a quick breakthrough in negotiations, dpa indicates. Germany and other major EU donors, such as the Netherlands, Sweden, and Austria, are demanding cuts to the budget proposal by several hundred billion euros. At the same time, a number of countries, including France, Spain, and Poland, are advocating for an increase in the budget. **Cuts to spending on science, foreign policy, and defense** According to dpa, Ireland has proposed significant cuts to spending in areas where the European Commission initially planned to allocate more funds: competitiveness, scientific research, defense, as well as foreign policy and development policy. At the same time, traditional major expenditure items—agricultural policy and cohesion policy—remain virtually untouched. According to AFP, Ireland proposes to cut international aid spending by 17 percent, administrative expenses by 12 percent, and funding for the new competitiveness fund by approximately 13 percent. At the same time, according to estimates from the Irish presidency, a three percent cut may also affect traditional areas such as agriculture and regional development funds. **Disappointment in Brussels over Ireland's proposal** One EU diplomat, speaking with dpa, described the Irish proposal as disappointing, noting that it cannot even remotely serve as a basis for an agreement, as the significant increase in spending it envisions is unsustainable for the budget. Furthermore, according to the agency's source, this project prioritizes political tasks of the 20th century without preparing the EU for the challenges of the 21st century. "We urgently need a more realistic approach to finances, rather than floating in the clouds," the agency quotes him. The draft of the next long-term budget will be discussed at the EU summit next week. An agreement on the EU's long-term budget plan must be reached by the end of the year. The EU budget is primarily formed from contributions based on the gross national income (GNI) of member states. Germany, which has the largest economy in the EU, makes the most significant contribution—by a large margin compared to other countries, writes Deutsche Welle.