The bloc is split between frugal countries demanding cuts of several hundred billions to the nearly €2 trillion proposal on the table and a rival camp of southern and eastern states, known as the Friends of Cohesion, opposing reductions.
In a concession to the Friends of Cohesion, Ireland shielded farmers’ subsidies and regional payouts, that account for half of the total budget and are politically sensitive, from any cuts.
Instead, the bulk of the reductions came from foreign aid which was cut by €38 billion; competitiveness which was axed by €75 billion and the EU’s administrative costs which were reduced by €10 billion.
Dublin also scrapped a rainy day fund, known as the “EU Facility cushion,” that allowed the European Commission to deploy cash to tackle unforeseen emergencies throughout the seven-year budget cycle.
Ireland’s Minister of State for European Affairs Thomas Byrne, who leads the negotiations, defended the proposal as a balanced compromise between 27 countries.
“We protected … the traditional policies of the Union, which are very important for the European Union and the single market. But we also very much look to the future,” Byrne told reporters.
