The EU long-term budget negotiations have reached a crucial stage after Ireland’s Presidency of the Council of the European Union published a revised proposal for the 2028–2034 Multiannual Financial Framework (MFF). The plan aims to balance investment in competitiveness, security and innovation with continued support for agriculture, cohesion and rural communities.
Published on 10 October 2026 by the Department of Foreign Affairs and Trade, the revised “Negotiating Box” is intended to provide a compromise framework before discussions among EU leaders later this month.
EU Long-Term Budget Proposal Sets Out €1.62 Trillion Framework
The Irish Presidency proposal outlines an overall EU budget of €1.62 trillion, representing a 30% increase on the current MFF. It equals 1.16% of EU gross national income, or 1.05% when repayments of Next Generation EU common debt are excluded.
At the same time, the proposal identifies €141 billion in savings compared with the European Commission’s earlier plan. Savings are distributed across the budget headings while maintaining increases for most programmes compared with the existing framework.
Key spending priorities
- Competitiveness, research and innovation
- European security and defence
- Agriculture, fisheries and rural communities
- Economic, social and territorial cohesion
- Humanitarian assistance and external action
Competitiveness and Core EU Policies
Under Heading 2, covering competitiveness, prosperity and security, the Irish Presidency proposes more than €400 billion for European Competitiveness Funds. This would double the volume of competitiveness-related programmes compared with the current MFF.
The proposal also preserves national allocations for cohesion, agricultural and fisheries policies through National and Regional Partnership Plans. These measures reflect calls from many Member States to protect treaty-based policies supporting farmers, regions and rural economies.
For external action, the plan maintains €25 billion for humanitarian assistance and retains the EU’s 90% Official Development Assistance target. Administration spending is proposed at €95 billion, which is lower than the Commission’s proposal but higher than under the current budget.
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New EU Revenue Sources Remain Under Negotiation
A central part of the package concerns new “Own Resources” to help fund the EU budget. The Irish Presidency says the proposed measures could be implemented from 2028 and raise approximately €55 billion annually, although Member States remain divided and further negotiations are required.
The proposal addresses concerns about national contributions while recognising the fiscal pressures facing governments across Europe. Ireland’s Department of Foreign Affairs and Trade, the Department of the Taoiseach and Finance will now remain closely involved as the discussions move towards the European Council.
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What Happens Next?
Member States will study the revised Negotiating Box during the coming week. The issue is expected to be discussed by EU leaders at the October European Council, with the Irish Presidency seeking a final agreement before the end of 2026.
The Taoiseach said the proposal should help move negotiations forward, while the Tánaiste and Minister for Finance highlighted the importance of the new revenue package. Foreign Affairs Minister Helen McEntee called for flexibility and pragmatism, and Minister of State Thomas Byrne said the framework was designed to bridge differences between Member States.
Conclusion
The EU long-term budget proposal published by Ireland marks an important step towards agreement on the Union’s financial priorities for 2028–2034. Its success will depend on whether Member States can reconcile ambitious investment in competitiveness and defence with established commitments to cohesion, agriculture and humanitarian support.
Article/Image Courtesy: gov.ie
