Seventeen EU member states formally oppose proposed cuts to cohesion and agriculture spending ahead of the October European Council summit on the 2028‑2034 multiannual financial framework
Executive summary: On 3 October 2026, 17 EU countries known as the Friends of Cohesion sent a joint letter to the Council presidency rejecting any reduction in cohesion policy and common agricultural policy (CAP) allocations in the upcoming 2028‑2034 multiannual financial framework (MFF). Cohesion and CAP together account for roughly 60 % of the current EU budget; cuts would directly affect regional development in poorer member states and farm income support across the bloc, reshaping investment flows and political balances ahead of the 2029 European elections.
Who is involved: The 17 signatory governments (including Italy, Spain, Poland, Greece, Portugal and several central‑eastern members), the Council presidency (Cyprus until end‑June 2026, then Denmark), the European Commission (budget commissioner), and the European Parliament’s budget committee.
Likely next: The October European Council will issue political guidelines; the Commission is expected to publish its MFF proposal by late 2026, opening formal trilogue negotiations that will run through 2027.
The 'Friends of Cohesion' group, representing 17 mostly southern and eastern EU capitals, has warned the Council presidency that reducing structural and farm funding would undermine convergence and food security goals. The letter arrives two weeks before the 15‑16 October summit where leaders will set the political parameters for the next seven‑year budget. No binding figures have been tabled yet; the intervention aims to anchor the negotiation baseline before the Commission presents its formal proposal later this year.
What's next — scenarios
Base: Moderate trims with enhanced conditionality (50%)
Cohesion and CAP envelopes shrink 5‑8 % in real terms but gain stricter performance‑based disbursement rules; net contributors accept smaller cuts in exchange for reform.
- Commission MFF proposal includes ‘performance reserve’ mechanism
- Council conclusions endorse ‘modernisation’ language
Upside: Status‑quo envelopes protected by political deal (25%)
Nominal cohesion and CAP ceilings are frozen at 2021‑2027 levels; additional own‑resources (e.g. CBAM, ETS2) cover new priorities without cutting funds.
- Friends of Cohesion secure qualified‑majority blocking minority
- New own‑resources legislation adopted before 2027
Downside: Deep cuts redirected to defence and competitiveness (25%)
Cohesion and CAP reduced 12‑15 % to finance a permanent EU defence fund and a competitiveness instrument; convergence regions face project pipelines stall.
- European Council mandates ‘strategic autonomy’ budget line
- Germany and Netherlands form coalition for reprioritisation
What to watch
- European Council conclusions 15‑16 Oct 2026 – wording on cohesion/CAP ceilings
- Commission MFF legislative proposal publication (expected Nov‑Dec 2026)
- Own‑resources package adoption timeline (CBAM, ETS2, corporate tax)
- Friends of Cohesion ministerial meeting follow‑up (likely Nov 2026)
- European Parliament budget committee draft report (Q1 2027)
Timeline
- — Bilancio UE: 17 paesi contro nuovi tagli a Coesione e Agricoltura (Il Sole 24 Ore — Economia)
Analysis — what this means
Likely next events
- European Council summit 15‑16 Oct 2026 sets political direction for MFF 2028‑34
- Commission to table formal MFF proposal by end‑2026
- Trilogue negotiations between Council, Parliament and Commission to run through 2027
Sectors affected
- Regional construction and infrastructure contractors in convergence regions
- Agri‑food processors and primary producers reliant on CAP direct payments
- EU‑funded research and innovation consortia linked to smart‑specialisation strategies
Regulatory implications
- Potential revision of Common Provisions Regulation (CPR) governing cohesion fund eligibility
- CAP strategic plans may require renegotiation if envelope changes
- New conditionality rules linking disbursements to rule‑of‑law and green‑transition benchmarks
Historical parallels
- 2018‑2020 MFF negotiations where Friends of Cohesion limited cuts to ~10 % in real terms
- 2013‑2014 CAP reform introducing direct‑payment convergence and greening requirements
- 2005‑2006 budget review that created the ‘British rebate’ precedent for net‑contributor leverage
Key entities
Sources
- Bilancio UE: 17 paesi contro nuovi tagli a Coesione e Agricoltura — Il Sole 24 Ore — Economia