Germany, the Netherlands, Sweden, Denmark and Austria have rejected a proposal by 15 member states to boost spending on the Common Agricultural Policy (CAP) and cohesion funds in the European Union’s next long-term budget, and to delay repayment of pandemic-era recovery debt.
The ‘frugal’ northern countries voiced their reservations during a meeting of European affairs ministers in Brussels on May 26, where the bloc’s Multiannual Financial Framework (MFF) for 2028-2034 was under discussion.
Their pushback followed a joint declaration by the so-called ‘Friends of Cohesion’ group — Spain, Bulgaria, the Czech Republic, Croatia, Estonia, Greece, Italy, Lithuania, Latvia, Malta, Poland, Portugal, Romania, Slovenia and Slovakia — calling for a bigger share of EU funds to be channelled to farming and regional policies.
The signatories argued in their statement that the CAP, the Common Fisheries Policy and Cohesion were “the only policies facing cuts in real terms, despite the overall increase in the volume of the new Multiannual Financial Framework”. They also said a “more gradual” repayment schedule for NextGenerationEU debt and fresh joint borrowing should be considered “viable options” to fund strategic EU priorities.
Speaking on arrival at the meeting, Spanish Secretary of State for the European Union Fernando Sampedro said the declaration addressed “how” the EU should reach a higher level of ambition, which Madrid pegged at 2 per cent of GDP.
The German delegation responded that a sizeable increase in the budget volume, as proposed by the European Commission, was not feasible and would worsen Berlin’s net contributor balance “disproportionately”. Germany also rejected delaying repayment of the bloc’s joint debt, citing “political obligations”.
Berlin said the next budget had to focus on “competitiveness, security and defence”, arguing that “a step back to the status quo is not possible”.
The Netherlands echoed that view, saying a future-focused MFF was needed and that shielding cohesion, the CAP and administration from cuts was inappropriate. The Dutch Government also urged the EU to modernise the budget, lean more on private investment and maintain a strong customs administration to safeguard European competitiveness.
Sweden ruled out both joint debt and new EU own resources, two of the main funding routes proposed by the Friends of Cohesion. Stockholm said deepening the single market was “a structural and regulatory task, not a financial one” and that “excellence” should be the priority criterion for allocating EU funds. It also called for stronger rule-of-law conditionality.
Denmark accepted that the budget “could be higher”, though only if tied to modernisation and new priorities such as defence, support for Ukraine and competitiveness. Copenhagen warned that the increase currently on the table was “excessive”.
Austria called for spending restraint and a stable national contribution, and demanded new correction mechanisms for major net contributors. Vienna said the next MFF should target areas with “European added value”, such as digitalisation and energy and transport infrastructure.
