European Union finance ministers are convening in Brussels to tackle the proposed €1.9 trillion budget for 2028–2034, as negotiations heat up under Ireland’s presidency of the Council of the European Union. The European Commission has put forth this budget plan, but several member states, including Germany, Denmark, the Netherlands, Sweden, and Austria, are pushing for significant cuts, while others aim to preserve funding for agriculture and regional cohesion.
Ireland is tasked with brokering consensus on the budget’s overall size and priorities, as well as determining member states’ contributions. This comes as the EU prepares to start repaying post-Covid recovery loans beginning in 2028, with an estimated annual requirement of €24–€25 billion.
New revenue sources for the EU are also on the negotiation table. Proposals include redirecting certain carbon-related levies, contributions from large companies, and taxes on tobacco and electronic waste to the EU budget. The European Commission estimates these measures could generate approximately €44 billion annually. However, any new revenue measures require unanimous approval from all EU member states.
Further discussions involve potential taxes on cryptocurrencies, large technology companies, and the introduction of a gambling levy. Ireland is preparing a draft negotiating framework in anticipation of an EU leaders’ summit in October, when discussions are expected to escalate to the European Council level. Securing an agreement during Ireland’s presidency is a key goal for the government.
In a separate development, the EU and the Philippines have announced significant progress towards finalizing a free trade agreement. Initiated in 2016 and resumed in 2024, negotiations have advanced to a point where both parties aim to conclude the deal in the coming months. The proposed agreement would reduce tariffs on over 97% of bilateral trade, facilitating the exchange of goods and services, which was valued at €17.6 billion and €10.3 billion respectively, last year.