The General Affairs Council on 16 June 2026 debated the revised negotiating box for the 2028–2034 Multiannual Financial Framework (MFF), exposing deep divisions among member states over budget size, spending priorities, and revenue sources. Cyprus, holding the Presidency, presented a compromise featuring roughly 2% overall cuts, preserved modernised architecture, and attention to states below 90% of the EU average, aiming for agreement by end-2026. European Commission representative Piotr Serafin defended the Commission's original proposal, opposing cuts to defence, competitiveness, and flexibility, and stressing the need for new own resources.
A group of net contributor countries—Germany, Sweden, Austria, the Netherlands, Belgium, Denmark, and Finland—pushed for deeper cuts and a smaller budget, while Latvia, Lithuania, Greece, Spain, Romania, Croatia, and Estonia opposed reductions. On priorities, Germany, Denmark, Sweden, the Netherlands, and Finland argued for shifting funds to defence, AI, and security, while a larger coalition including Latvia, Slovakia, Malta, Poland, Croatia, Slovenia, France, Portugal, Greece, Romania, Bulgaria, Czechia, and Belgium defended cohesion and the Common Agricultural Policy (CAP) as essential. On own resources, Latvia, Portugal, Lithuania, Greece, Spain, Croatia, Romania, Slovakia, Luxembourg, and France supported new own resources, while Sweden, Germany, Finland, the Netherlands, and Denmark rejected or were sceptical. Hungary criticised the revenue side, and Bulgaria, Slovenia, Poland, and Estonia opposed rebates. Eastern border regions were highlighted by Latvia, Lithuania, Estonia, Poland, Romania, Bulgaria, and Finland, calling for dedicated solutions. On rule of law and Semester conditionality, Luxembourg, Hungary, France, Slovakia, Czechia, Belgium, and Spain opposed making recommendations binding, while Finland, Sweden, Austria, Germany, Italy, and the Netherlands supported stronger conditionality.
The Council agreed partial general approaches on the National and Regional Partnership Plans (NRP), European Competitiveness Fund (ECF), and Global Europe as a basis for talks with the European Parliament, though several delegations abstained or entered reservations. The debate highlights trade-offs between fiscal consolidation and maintaining EU cohesion and agricultural support, with net contributors favouring a leaner budget focused on new priorities, while net beneficiaries resist cuts to traditional funds. The outcome will affect EU member states, regions, farmers, and businesses reliant on cohesion and CAP funding, as well as defence and tech sectors eyeing increased allocations.