Govt defends draft EU budget after Kallas criticism

Updated / Tuesday, 20 Oct 2026 20:32

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The Government has defended its handling of its draft long-term EU budget, following criticism by the EU's foreign policy chief that 17% cuts to Europe’s foreign and international development budget would badly hamper the EU’s ability to confront mounting global crises.

Yesterday, Kaja Kallas, the EU’s High Representative for Foreign Policy, wrote to MEPs that Ireland’s draft proposal was a cause for "serious concern" and that the cuts would have "major consequences" for the EU and its partner countries "in terms of resilience, security, stability, prosperity, competitiveness and migration."

Under the Irish Presidency, Dublin was tasked with putting forward a so-called Negotiating Box as a basis for talks between member states on the size and scope of the long-term budget, which will run from 2028-2034.

The Government tabled its draft budget on October 10, ahead of last week’s EU summit, where the seven-year budget was discussed by 27 leaders.

The Government had come under sustained pressure from capitals to either cut the €1.72 trillion budget originally proposed by the European Commission, or to preserve the CAP and cohesion payments headings.

In its Negotiating Box, the Government had proposed a cut of 17% of the Global Europe heading in the budget compared to the European Commission’s original proposal.

Ms Kallas’s letter was co-signed by five other EU Commissioners.

In a statement to RTÉ News, the Irish Presidency said: "Following intensive consultations by the Irish Presidency, it’s clear that Member States agree that the EU’s external action must remain a key priority."

The statement added: "However, the clear consensus is for a more moderate increase on funding than that proposed by the Commission.

"The Irish Presidency Negotiating Box has proposed that [Global Europe] be increased by 31% on the current [seven year EU budget], bringing savings of 17% on the Commission proposal.

"We are confident that this increased funding will continue to provide for this essential need, while reflecting the calls from Member States for greater fiscal restraint."

The Presidency said it was important to note that the Irish draft had retained the 90% spending target for Official Development Assistance as well as the €25 billion humanitarian assistance commitment, "provided for greater predictability for programming and strengthened the Union’s support for Least Developed Countries."

It said the Irish draft had also maintained the Commission’s full proposed allocation for recovery and reconstruction funds to Ukraine.

The statement said: "It is absolutely the right and prerogative of each institution to advocate strongly for increased budgets, but the role of the Presidency is to reflect the views of Member States.

"The goal for the Irish Presidency’s Negotiating Box is to move discussions on to the next phase under [the President of the European Council Antonio Costa’s] stewardship and to support agreement by Member States by the end of the year."