European affairs ministers from the EU are convening in Brussels to tackle contentious negotiations over the bloc’s proposed €1.9 trillion budget for 2028–2034. The talks, led by Ireland during its presidency of the Council of the European Union, come amid calls from countries such as Germany, Denmark, and the Netherlands for significant budget cuts, while others aim to safeguard funding for key areas like agriculture and regional cohesion.
The proposed budget not only addresses financial commitments but also includes plans for repaying post-Covid recovery loans, which will require annual payments of approximately €24–€25 billion starting in 2028. As part of the discussions, ministers are considering new revenue streams for the EU, including reallocating carbon-related levies and introducing contributions from major companies. The European Commission suggests these measures could collectively generate about €44 billion each year.
In addition to these revenue proposals, other potential sources of income being debated include taxes on cryptocurrencies, large tech firms, and a gambling levy. However, any new taxation measures will require unanimous consent from all EU member states, a process that could prove challenging.
Ireland is currently drafting a negotiating framework in preparation for an upcoming EU leaders’ summit scheduled for October, where budget discussions are anticipated to escalate to the European Council level. Securing an agreement on the budget during Ireland’s presidency remains a primary objective.
Meanwhile, the EU and the Philippines have made notable progress toward finalizing a free trade agreement, with negotiations aiming for completion in the coming months. This deal, which has been in development since 2016 and picked up pace in 2024, seeks to eliminate tariffs on over 97% of bilateral trade. Last year, the trade in goods between the EU and the Philippines amounted to €17.6 billion, with services trade reaching €10.3 billion in 2024.