On 16 June 2026, Budget and Administration Commissioner Piotr Serafin addressed the General Affairs Council in Luxembourg, warning that a proposed 4% cut to spending on defence and competitiveness in the next Multiannual Financial Framework (MFF) would undermine joint EU projects. Speaking after the Presidency presented a negotiation box, Serafin acknowledged that no proposal would fully satisfy all parties but stressed that the Commission cannot remain indifferent to reductions in areas where joint action is critical for security and economic strength.
Serafin noted that the cut would not reduce overall public spending, as national budgets would have to cover the same expenditure items, but would forfeit the added value of collaborative projects. He also cautioned against reducing flexibility margins in the budget, arguing that buffers are essential to respond swiftly to crises. The Commissioner praised the Presidency for its work in reconciling conflicting expectations and welcomed elements of the negotiation box that preserve a modernised budget structure and simplification measures.
On the revenue side, Serafin welcomed the clear signal that new own resources are part of the equation, calling progress on this front a necessary precondition for a balanced deal. He expressed hope that the European Council, meeting later this week, would give a strong political push to further work during the Irish Presidency on new own resources, particularly in light of the European Parliament's recent proposals.
Serafin reiterated the Commission's position that an agreement must be reached by the end of 2026, citing the war on the European continent, protracted instability nearby, and a struggling economy as reasons for urgency. He stressed that a delayed entry into force of the next MFF would be unacceptable.
The speech contained no new concrete proposals but reaffirmed the Commission's defence of its July 2025 proposal and its opposition to cuts in defence and competitiveness. The policy orientation is to maintain or increase EU-level spending on joint security and competitiveness projects, resisting nationalisation of these expenditures. The speech did not address specific figures beyond the 4% cut or detail new own resources proposals.
Stakeholder impact: EU member states face pressure to accept less flexibility and maintain higher EU-level spending on defence and competitiveness, potentially limiting national budgetary discretion. EU defence and competitiveness sectors could benefit from continued joint funding, supporting cross-border projects. EU taxpayers may see limited net savings if national budgets absorb shifted costs. The European Parliament gains a stronger role if new own resources are advanced, increasing its influence over EU revenue.