EU Parliament receives additional up to nine billion euros in funding from Germany
The European Union is currently embroiled in a contentious budget dispute, with disagreements between member states and the European Parliament over the size and allocation of funds in the upcoming multi-annual financial framework (MFF) for 2028-2034.
At the heart of the dispute is a balance between fiscal responsibility and increased funding needs. The German government, holding the rotating presidency of the Council, has presented a compromise proposal aiming to find this balance. However, tensions remain high, particularly regarding Hungary's frozen funds and the European Parliament's demands for increased spending on key EU programs.
Hungarian Prime Minister Viktor Orbán has announced that Hungary will veto the 2025 EU budget unless the EU Commission releases some €18 billion in cohesion and recovery funds currently frozen due to rule-of-law concerns. This veto threat complicates negotiations on the new budget, including the so-called "war budget," which includes significant funds for military and Ukraine support. Orbán opposes financing military capacity building through the common EU budget rather than national budgets.
Meanwhile, the European Parliament has expressed strong objections to the Commission's July 2025 budget proposals, deeming the proposed allocations insufficient to meet priorities such as climate action, social programs, and innovation. The Parliament has criticised Budget Commissioner Piotr Serafin for the limited increase and lack of consultation in the drafting process.
The German compromise proposal seeks a middle ground, increasing some funding lines to meet Parliament demands while maintaining fiscal prudence that satisfies member states wary of excessive spending amid economic pressures. However, the details of the German plan have not been fully disclosed publicly.
The overarching challenge remains achieving unanimous Council approval alongside Parliamentary consent while managing conflicts like Hungary’s veto threat and disputes on the rule of law conditionality. The details of the new mechanism for stopping the payment of EU funds if the rule of law is not functioning have not been disclosed in the reported information.
The seventh negotiating round with the parliament is scheduled for Thursday. The European Parliament's approval is necessary for the funds to flow on time. The European Parliament is located in Brussels, Belgium.
In summary, the EU budget negotiations for 2028-2034 are ongoing, with the German government's compromise aiming to bridge Parliament's increased funding demands and member states' fiscal concerns. The unresolved situation with Hungary’s frozen funds and Orbán’s veto threat poses a significant barrier, making the final agreement uncertain and likely to require extended high-level negotiation.
- Amidst the ongoing budget negotiations within the European Union for 2028-2034, disagreements extend beyond just fiscal responsibility to other areas such as finance, business, politics, and general-news, as evidenced by Hungary's veto threat and the European Parliament's criticisms on funding allocations for key EU programs.
- Beyond the fiscal issues, the tensions in the European Union's budget negotiations also involve discussions on redirecting finance from areas like military capacity building to climate action, social programs, and innovation, demonstrating their impact on the broader scope of issues like general-news and business.
