The General Affairs Council on 16 June 2026 debated the revised negotiating box for the 2028–2034 Multiannual Financial Framework (MFF), revealing sharp divisions among member states on budget size, spending priorities, and revenue sources. Cyprus, holding the Presidency, presented a compromise with about 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 new own resources.
A coalition of net contributors—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 Latvia, Slovakia, Malta, Poland, Croatia, Slovenia, France, Portugal, Greece, Romania, Bulgaria, Czechia, and Belgium defended cohesion and 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 underscores the challenge of reconciling competing demands: net contributors seek fiscal restraint and new priorities like defence and AI, while cohesion and CAP beneficiaries resist cuts. New own resources remain a fault line, with supporters arguing for EU autonomy and sceptics fearing higher national contributions. The outcome will affect EU member states, regions, farmers, businesses, and beneficiaries of cohesion and agricultural funds, with potential trade-offs between fiscal discipline and regional development.