The Cyprus presidency of the EU Council on 11 June 2026 presented a revised negotiating box for the next Multiannual Financial Framework (MFF), proposing a 2% cut across all budget headings. Deputy Minister Marilena Raouna defended the compromise as an honest broker effort balancing net payers' demands for cuts with cohesion and agriculture supporters' calls for maintained funding. She stressed that the modernized architecture keeps the European Competitiveness Fund at over 50% of the budget and preserves the excellence criterion.
The proposal comes as the EU faces a tight deadline to agree on the 2028–2034 budget by the end of 2026. Journalists from DPA, Cyprus News Agency, and Euronews questioned whether the box could satisfy both net payers (like Germany) and traditional priorities, and raised the risk of no deal. Raouna acknowledged red lines but expressed confidence that putting concrete figures on the table would bridge positions. She noted 19 days remained in the Cyprus presidency, with work continuing on sectoral files (NRPP, ECF, Global Europe) before handover to the Irish presidency.
net payers pushing for fiscal restraint versus cohesion and agriculture beneficiaries defending traditional spending. The 2% cut across all headings is a middle-ground attempt that may satisfy neither camp fully. Net payers may see it as insufficient, while supporters of cohesion and agriculture may view it as a threat to long-standing EU solidarity. The European Competitiveness Fund, kept at over 50% of the budget, signals a priority on innovation and competitiveness, potentially at the expense of other areas. Stakeholders most affected include all EU member states, particularly net payers and cohesion/agriculture beneficiaries, as well as sectors relying on EU funding for competitiveness, defense, and long-term investment. The risk of no deal by end-2026 remains, with the presidency's proposal aiming to break the deadlock.