Von der Leyen and Montenegro push back against 2028–2034 EU budget cuts

Commission warns against austerity

European Commission President Ursula von der Leyen addressed the European Parliament in Strasbourg on 6 October 2026, cautioning member states against reducing the bloc's next long-term budget covering the 2028–2034 period. Speaking during a plenary debate to prepare for the European Council meeting scheduled for mid-October, she acknowledged the tight fiscal constraints facing national treasuries across the continent. She insisted that lowering the financial envelope would force severe cutbacks in core EU programmes that member countries had previously endorsed. To bridge the funding gap without overstretching national budgets, the Commission proposed a dedicated package of new own resources to generate institutional revenue. Von der Leyen pointed directly to recent energy price volatility as an acute reminder of the financial scale required to meet European challenges.

I am aware that it is not easy to balance all the constraints. I am also aware of the difficult budgetary situation of the member states, but I would like to warn of the risks of major cuts.

Balancing new and traditional priorities

Negotiations over the Multiannual Financial Framework require balancing new geopolitical obligations with traditional European spending programmes. Von der Leyen identified increased funding for defence and security, industrial competitiveness, and innovation as top priorities for the upcoming cycle. She also called for strengthening the Union's direct response mechanisms for crises such as illegal migration and natural disasters, recalling that summer conditions demonstrated how critical emergency financing instruments have become. At the same time, the Commission executive maintained that traditional cohesion allocations and Common Agricultural Policy funds must not be compromised during negotiations. The Commission argued that preserving this broad mandate requires governments to focus on new revenue mechanisms rather than reducing collective ambition.

I believe that the priorities we proposed in the MFF are the right priorities and, if we want to preserve our priorities and the level of ambition we have for Europe, we have to do the hard work on the revenue side.

Portugal defends cohesion allocations

Portuguese Prime Minister Luís Montenegro also addressed the European Parliament in Strasbourg on Tuesday as part of the "This is Europe" debate format. European Parliament President Roberta Metsola introduced the debate initiative in January 2022 to give heads of state and government a dedicated platform to present their strategic vision for the continent. Montenegro met with Metsola prior to his speech at 10:30 local time (09:30 Lisbon time). Portugal has adopted a firm stance against any reduction in regional cohesion allocations, with Montenegro warning that his administration will actively reject budget proposals that include cohesion cuts. Ahead of the session, the European People's Party noted that the speech presented an opportunity to outline Portugal's priorities for a financial plan that simultaneously advances security, competitiveness, and regional cohesion.

Diplomatic battlelines and summit preparation

The budget debate has exposed deep divisions between net contributors seeking fiscal restraint and member states defending regional funds. Ahead of the Strasbourg discussions, Montenegro joined 16 other EU heads of state and government in signing a joint letter demanding full protection for cohesion policy and agricultural funds, arguing that cuts would diminish popular support for the European project. That letter served as a direct counterweight to an earlier proposal signed by Germany and other net-payer countries seeking spending reductions. Ireland, which holds the rotating presidency of the Council of the EU, is scheduled to deliver a revised negotiating framework containing new own resources by the end of the week. European leaders will debate that proposal at a summit in Brussels next week, with European Council President António Costa seeking to finalize a unanimous political agreement before the end of the year.