MFF mayhem: Should the EU increase its budget, or focus on austerity?

Frugal member states, led by Germany and the Netherlands, are demanding strict austerity.

The Multiannual Financial Framework (MFF) is the EU’s long-term budget for the next seven years. It sets the maximum amount of annual spending across different policy areas. In July 2025, the Commission launched its proposal for the 2028–2034 MFF, attempting to balance traditional priorities like farming with new needs like defence.

The plan is haunted by the "interest trap": the massive cost of repaying NextGenEU pandemic loans, which could swallow 10% of the total budget.

The Commission tried to hold a 1.26% spending cap, the Parliament’s BUDG committee responded in April with an ambitious interim report, arguing that a smaller budget would result in a "real-terms" cut to essential services.

The new demands threaten to cause chaos, because they exploit the Parliament’s only real power: the right of refusal. Under the "consent procedure," MEPs cannot amend the final deal; they can only say "yes" or "no." By threatening to "slap" the €2 trillion plan, the Parliament risks a total deadlock at the crucial June summit.