Sweden and five others issue ultimatum on EU budget

TT

 

Published 08.58

 

What should be prioritized in the EU’s next long-term budget? Pictured is part of the EU headquarters in Brussels. File photo. Photo: Olivier Matthys/AP/TT

Sweden is one of six countries threatening to block the EU’s long-term budget—unless cuts amounting to hundreds of billions of euros are made.

The EU budget must be reformed from the ground up; "we must make choices," states a letter signed by leaders from Germany, the Netherlands, Denmark, Austria, Finland, and Sweden—seen by the *Financial Times*.

"If there are no cuts amounting to hundreds of billions, there will be no agreement this year," a diplomat from one of the countries tells the newspaper.

The dispute concerns the EU’s long-term budget for the years 2028–34. The six leaders want to allocate more resources to defense and innovation, given the growing challenges in these areas. However, a group of 17 countries—including Spain and Italy—believes that agricultural subsidies, in particular, should be increased.

Ireland, which currently holds the presidency of the Council of Ministers, is working on a compromise.