Ireland’s EU presidency will unveil a new budget proposal on Saturday as bitter divisions deepen between member states over how much the bloc should spend and where the money should come from, according to RMF24 — Ekonomia.
Poland has a significant stake in the negotiations, with Warsaw expecting approximately €123 billion from the new multi-annual budget. The country is determined to protect funding for cohesion policy and agriculture, two areas now under threat from proposed spending cuts.
“We cannot satisfy everyone. However, we hope that everyone will find something for themselves in the compromise,” Thomas Byrne, Ireland’s minister of state for European affairs, told the European Parliament as he outlined the Irish presidency’s position.
Deep divisions over spending priorities
The budget battle has split EU member states into two camps. On one side, Germany leads a group demanding major cuts to the forthcoming budget, potentially running into hundreds of billions of euros. These nations want to reduce traditional spending categories and redirect larger sums toward defence, security and competitiveness.
On the other side, seventeen countries including Poland have united in opposition to any reductions in cohesion policy and agricultural funding. This clash of priorities has made finding common ground particularly challenging for the Irish presidency.
Although the presidency has not officially confirmed details, diplomatic sources suggest the new proposal could include cuts in the region of €200 billion or more. Such reductions would prove highly unfavourable for Poland, which relies heavily on both cohesion funds to develop infrastructure and regional economies, and agricultural subsidies for its substantial farming sector.
Battle over new revenue sources
The Irish presidency is attempting to broker a compromise not only on spending levels but also on how to fund the EU budget. Byrne emphasised that new own resources would “play a key role” alongside questions about the budget’s overall size.
Ireland has set three conditions for any new revenue streams: they must generate significant income, receive unanimous approval from all member states, and be ready for implementation by 2028.
Poland has already drawn a clear red line on this front, refusing to allow revenues from the Emissions Trading System (ETS) to become a source of EU budget funding. In a recent letter, cohesion policy countries further stressed that any new taxes or levies must be fair and non-regressive, meaning they cannot place a heavier burden on poorer member states than on wealthier ones.
The European Commission argues that fresh revenue sources could reduce pressure on national contributions. However, some EU diplomats have countered that these are not “free” funds but money that would otherwise flow into national budgets rather than Brussels coffers.
What this means for Poles in Poland
If the proposed cuts materialise, Poland could face a significant reduction in the EU funding that has helped drive economic development over the past two decades. Cohesion policy funds have financed roads, railways, broadband infrastructure and business support across the country, particularly in less developed regions. Agricultural subsidies underpin the income of hundreds of thousands of Polish farmers.
The Irish presidency aims to secure agreement among EU leaders on the entire budget framework before the end of this year. Any final deal requires unanimous approval from all twenty-seven member states, giving Poland a veto. However, exercising that power could prolong negotiations and delay certainty for businesses, local authorities and farmers who depend on multi-year funding commitments.
Polish citizens should monitor announcements from the European Council summits in the coming months, as the outcome will directly affect public investment, rural support payments and regional development programmes across Poland through the late 2020s and into the next decade.
