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Europe risks entering 2028 without an agreed budget, putting billions of euros for farming, defense, innovation, and support for Ukraine in jeopardy. Next year, Cyprus takes the wheel as President of the Council of the European Union, tasked with bridging divisions among member states and securing agreement on the EU’s next long-term budget, the Multiannual Financial Framework (MFF) for 2028–2034.
The current presidency of the EU Council has already laid out a draft “negotiating box” with options for funding and contributions. But disagreements persist over national rebates and discounts on contributions, supported by Germany and other countries, while Poland, Spain, Portugal, France, and Lithuania argue that rebates are unfair and undermine equality among EU nations. The European Commission is pushing for a fairer system, eliminating national deductions in favor of new EU-level resources.
According to Kathimerini's Dorita Yiannakou, if an agreement is not reached by the end of 2026, temporary funding measures would have to be activated, leaving Europe with uncertainty in crucial programs just as the new budget period begins.
Cyprus’ incoming presidency aims to accelerate negotiations, presenting a balanced package of numbers and temporary options to help member states reach a compromise. “We will work with commitment, focus, and ambition to deliver a mature negotiating framework within the deadlines,” said Marilena Rauna, Cyprus’ Minister of State for European Affairs. She added that the framework must allow the EU to implement its strategic priorities.
The Cyprus Presidency will also tackle major geopolitical challenges, including support for Ukraine, defense and security, migration, trade autonomy, and the situation in the Middle East. Rauna stressed the importance of predictable financing for Ukraine and said any peace agreement must respect its sovereignty while ensuring strong security guarantees. She also highlighted Cyprus’ focus on the Mediterranean, particularly the Cyprus Sea corridor, and condemned a recent attack on the Jewish community in Australia, pledging that combating racism, xenophobia, and anti-Semitism will remain a priority.
Beyond politics, the upcoming budget negotiations are a test of the EU’s ability to act cohesively under pressure. Securing the MFF is critical not just for funding programs but for ensuring Europe can invest in competitiveness, strategic autonomy, and the green transition. Cyprus’ role will be crucial in guiding the EU through this high-stakes challenge.
