Belgium warns EU cannot afford "ambitious" spending as budget talks expose bloc divide
Belgium has warned that strained national finances leave little room for a major increase in contributions to the European Union budget, as negotiations over the bloc’s next long-term spending plan expose divisions between fiscally cautious member states and countries pushing for higher investment.
The debate arose on Tuesday during a meeting of EU affairs ministers in Brussels ahead of formal negotiations on the bloc’s 2028–2034 multiannual budget, which are set to intensify at the European summit on 18 and 19 June.
“There are divergent positions,” Cypriot state secretary for European affairs Marilena Raouna acknowledged after the meeting. Cyprus, which will soon take over the rotating EU presidency, is expected to present a first compromise proposal in the coming weeks. Raouna said she remained confident that “landing zones” could be found between the opposing camps.
Belgium warns against higher contributions
Last summer, the European Commission proposed a budget of around 2 trillion euros, equivalent to 1.26 per cent of the EU’s gross national income over seven years. The plan would significantly increase Belgium’s contribution to the EU budget by an estimated 56 per cent.
Belgian foreign minister Maxime Prévot reiterated on Tuesday that Belgium’s strained public finances leave little room for a substantial rise in contributions. Before the ministerial meeting, Prévot joined counterparts from Sweden, Denmark, Finland, Germany, the Netherlands, France, Austria and Ireland for talks among the bloc’s main net contributors.
Afterwards, Swedish EU affairs minister Jessica Rosencrantz said the countries agreed there was “little room for increased contributions”. The group also backed what it described as a “modernisation” of the EU budget, with greater emphasis on competitiveness, defence and security.
“We feel more like innovators than frugal ones,” Prévot told fellow ministers, arguing that the budget should better reflect Europe’s changing priorities. He nevertheless stressed that agriculture and social cohesion — traditionally the largest spending categories — still require “substantial, guaranteed, and protected resources”.
Competitiveness and security high on agenda
The debate comes amid growing concern over Europe’s economic outlook. EU Budget Commissioner Piotr Serafin warned ministers that rising energy prices linked to escalating tensions involving the United States, Israel and Iran risk slowing European growth in the coming months and into next year. According to Serafin, a flexible and adequately funded EU budget could help support investment and economic growth across the bloc.
Meanwhile, a coalition of 16 mainly southern and eastern member states, including Italy, Spain and Poland, has called for a more ambitious budget. In a joint statement issued on Monday, the countries described the Commission proposal as “a good basis” for negotiations but argued that funding for agriculture and cohesion policy should be strengthened rather than reduced.
The group also proposed a more gradual repayment of EU coronavirus recovery loans and the abolition of budget rebates enjoyed by several wealthier member states.
Beyond disagreements over the overall size of the budget, member states also remain divided over how future spending should be financed. Some countries support new common European debt and additional EU-level taxes or levies, while others, including Germany and Belgium, firmly oppose such measures.
European Council president António Costa hopes member states can reach an agreement before the end of the year, after which the budget would still require approval from the European Parliament.
Press conference by president of the European Commission Ursula Von Der Leyen on the Multiannual Financial Framework (MFF) for 2028-2034 (next long-term EU budget) in the Berlaymont the headquarters of the European Commission an institution of the European Union in Brussels in Belgium on 16th of July 2025.
© PHOTO MARTIN BERTRAND / HANS LUCAS VIA AFP
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