A revised European Union budget proposal by Ireland’s rotating presidency has been rejected by the so-called “frugal” member states, according to RMF24. Sweden, the Netherlands and Germany are demanding far deeper spending cuts, casting doubt on whether an agreement can be reached by the end of the year.
Jessica Rosencrantz, Sweden’s minister for European affairs, dismissed the new proposal as “unreasonable” in a social media post. “The numbers that have been put on the table still mean an absolutely unattainable increase. We are therefore very far from an agreement. Sweden will continue to fight for a better budget, not a bigger one,” she wrote.
The Dutch government took an equally firm stance. Finance Minister Eelco Heinen announced that “with such steps there will be no agreement before the end of the year. The Netherlands wants a much greater reduction in the budget. We are therefore sending this proposal straight back,” according to RMF24.
Germany and Denmark join criticism
German Chancellor Friedrich Merz also criticised the proposal, emphasising that “the EU budget must be bearable for those who carry the main burden of financing it.”
Denmark pointed out that the cuts target areas linked to the Union’s biggest challenges: security, the energy crisis, technological competitiveness and migration. Copenhagen argued that the budget should provide Europe with resources to solve these problems rather than limit its capacity to act.
The self-styled “frugal” states are pushing for deeper cuts across all areas, including agriculture and cohesion policy. They also want a greater shift of funds towards competitiveness and defence. However, Ireland’s presidency has imposed tighter limits on competitiveness spending whilst reducing agriculture and cohesion policy by only around 3 per cent compared with the European Commission’s original draft.
Poland welcomes unchanged allocation
Ireland’s draft received a warmer reception from countries such as Poland. Ignacy Niemczycki, Poland’s deputy minister for European affairs, told RMF FM that it was “good news for Poland” because the country’s national allocation envelope of approximately €123 billion remains intact.
For now, the positions of the frugal camp and countries defending cohesion policy remain far apart. This sets the stage for a sharp debate at the EU summit in Brussels on 15–16 October and casts doubt on the possibility of a compromise in December, which both the European Commission and Ireland’s presidency are hoping for.
One diplomat from a “frugal” country told RMF FM that the December date is not a firm deadline. “If there are no deeper cuts, we can wait,” the source said.
What this means for Poles in Poland
Poland stands to benefit significantly from the current Irish budget proposal, with its €123 billion allocation unchanged from the European Commission’s draft. This funding primarily covers cohesion policy and agricultural subsidies, both critical to Poland’s infrastructure development and rural economy. If the frugal states force deeper cuts to these areas, Poland could see its allocation reduced.
The dispute is likely to drag on beyond December if northern European states maintain their hard line. For Polish farmers and regional governments relying on EU funds for projects already in the pipeline, uncertainty over the final budget size could delay planning and investment decisions. Citizens should monitor announcements from the Ministry of Funds and Regional Policy for updates on how negotiations affect specific programmes and payment schedules. Official information is available on the ministry’s website and through regional development offices across Poland.
