EU Confidential The €2 trillion question: Inside the battle over the EU's budget
Jul 18, 2025
Join financial services reporter Gregorio Sorgi, alongside trade reporters Camille Gijs and Ari Hawkins, as they delve into the maze of the EU's ambitious €2 trillion budget proposal. They discuss the fierce competition among member states for funding and the stark cuts to agricultural spending. The conversation shifts to the impending trade tensions as Donald Trump threatens hefty tariffs on EU exports, leaving Brussels in a tough spot—retaliate or capitulate? Tune in for insights into these critical issues facing the European Union.
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Centralized Budget Process Chaos
- Ursula von der Leyen centralized the EU budget process, sidelining other commissioners until late stages.
- This caused internal conflicts and late concessions, making the budget rollout chaotic and messy.
MFF Covers Diverse Priorities
- The EU's multiannual financial framework funds agriculture, regions, culture, defense, and more.
- It's politically sensitive because every commissioner and lobby wants a bigger budget share.
Agriculture Funding Stalemate
- The Common Agricultural Policy consumes about one-third of the EU budget but is considered inefficient by economists.
- Attempts to cut or reform it face strong resistance from farmers, commissioners, and agriculture ministers.