17 EU countries oppose budget cuts to agriculture and regional funding

A major rift has emerged over the EU's 2028–2034 budget. A coalition of 17 member states, led by Italy and Romania, has united to oppose cuts to agriculture and regional development, demanding that nearly €900 billion in funding be preserved. This directly challenges an ultimatum from six net-contributor nations, including Germany, who threaten to block the budget unless it is cut by hundreds of billions of euros to prioritize defense and competitiveness.

Frugal six budget cuts

• ▪A coalition of six net-contributor EU nations, including Germany, the Netherlands, Sweden, Denmark, Austria, and Finland, sent a letter on September 28, 2026, demanding the next Multiannual Financial Framework be cut by several hundred billion euros.
• ▪The six net-contributor nations, who finance nearly 40% of the EU budget, threatened to withhold agreement on the 2028–2034 budget unless substantial spending cuts are secured.

Seventeen-country coalition opposition

• ▪Italian Prime Minister Giorgia Meloni and Romanian President Nicușor Dan plan to host an informal meeting of the 17-country coalition during the EU summit on October 15–16, 2026.
• ▪A coalition of 17 EU member states, coordinated by Italy and Romania, signed a joint letter opposing cuts to agriculture and regional development funding in the 2028–2034 EU budget.
• ▪The 17-country coalition includes Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Italy, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, and Spain.

Agriculture funding preservation

• ▪The six frugal nations are pushing to reduce funding for farmers and poorer regions, which traditionally absorb about two-thirds of the EU budget, to rein in spending.
• ▪The 17-country coalition demands that nearly €900 billion in combined spending for the Common Agricultural Policy and cohesion policy be preserved in the next EU budget.

Cohesion policy spending

• ▪The Cypriot EU presidency in June 2026 proposed a 2% cut to the European Commission's near-€2 trillion budget proposal, which the six frugal nations rejected as too small.
• ▪The 17-country coalition calls for the deferral of approximately €25 billion in annual debt repayments linked to the COVID-19 pandemic and opposes budget rebates for wealthier EU states.

Defense spending priorities

• ▪The six frugal nations want to redirect EU funding toward modern priorities, including common investments in security, defense, competitiveness, innovation, and combating irregular migration.
• ▪The European Commission proposed redirecting some funds from traditional agriculture and regional support to boost defense and industrial competitiveness against Chinese and US competition.

EU revenue mechanisms

• ▪France is advocating for EU-wide taxes to fund budget increases, while some other member states have proposed issuing joint EU debt, which Germany and its allies oppose.
• ▪The European Commission proposed raising approximately €60 billion annually through EU-wide levies, including carbon market contributions, carbon-intensive import tariffs, electronic waste taxes, tobacco duties, and corporate levies.

Debatable claims

• ▪The EU should cut its next long-term budget by hundreds of billions of euros
• ▪Issuing joint EU debt is an appropriate way to finance the bloc's budget
• ▪EU funding for defense and competitiveness is more critical than agricultural and regional subsidies