European Union member states are deeply divided over a proposed €2 trillion budget for 2028–2034, with donor and recipient nations forming alliances ahead of critical talks led by EU Council President António Costa.

Negotiations over the next EU seven-year budget have escalated as two distinct blocs emerge: donor nations determined to limit their financial contributions and recipient countries advocating for the continuation of generous subsidies. Representatives of major donor nations met today in Berlin to coordinate their stance, prioritizing cuts to the ambitious €2 trillion proposal floated by EU Budget Commissioner Piotr Serafin last year.

The proposed budget represents a significant increase from the €1.2 trillion allocated in the previous cycle, with new funding priorities including defense, security, and competitiveness. To streamline expenditures, the EU plans to merge its traditional agricultural and regional funds into a consolidated €865 billion account, equivalent to 44% of the total budget. Brussels has proposed increasing revenues through measures like levies on electronic waste and tobacco products, while pledging to stabilize member state contributions based on economic performance.

EU Council President António Costa faces the challenging task of bridging the divide between wealthier nations and those reliant on EU subsidies. Costa, who has begun a tour of European capitals, emphasized the gravity of the decision to reshape EU finances and align spending with geopolitical priorities. His efforts aim to build consensus among the 27 member states, as Europe prepares for one of the most consequential budgetary decisions of its future trajectory.