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EU Budget Talks Heat Up as Political Groups Draw Battle Lines Ahead of Commission Proposal
As the European Commission prepares to unveil its proposal for the next seven-year EU budget on Wednesday, political groups in the European Parliament are gearing up for intense negotiations to defend their funding priorities. The upcoming Multiannual Financial Framework (MFF), which requires approval from both the European Parliament and all 27 EU member states, has triggered a fierce push by parties to secure their flagship programs.
Each group is determined to safeguard at least one core priority. For the Socialists and Democrats (S&D), that is the European Social Fund (ESF), a nearly €100 billion programme supporting jobs, education, and social inclusion. S&D MEP Carla Tavares called the ESF a “red line,” insisting the budget must reflect support for health, employment, and worker skills. The group is also advocating for increased contributions from member states and new EU-wide levies on digital firms and imported parcels.
The centre-right European People’s Party (EPP), Parliament’s largest group, also backs the ESF but is equally focused on preserving funds for agriculture and regional cohesion. Romanian MEP Siegfried Mureșan warned against merging existing programs into broader funds, a move reportedly central to the Commission’s draft. The EPP wants to ensure separate and direct budgets for farmers and regional development projects.
The European Conservatives and Reformists (ECR) echoed the EPP’s position, prioritising the Common Agricultural Policy (CAP) and infrastructure investments related to defence, including military mobility.
On the other hand, the liberal Renew Europe group opposes the idea of national “cash pots,” which they argue could sideline EU regions. French MEP Fabienne Keller warned such an approach would undermine EU unity and reduce transparency. Renew is calling for more “own resources” at the EU level, such as carbon border taxes, to avoid painful budget cuts and ensure funding does not benefit what they describe as “autocratic” regimes.
Meanwhile, the Greens and The Left are pushing for a socially and environmentally focused budget. The Greens want at least 50% of the MFF dedicated to climate-related goals, up from the current 30%. The Left is prioritising housing, child welfare, and poverty reduction, proposing a €20 billion European Child Guarantee.
In sharp contrast, the far-right Patriots for Europe (PfE) group opposes defence spending and EU aid to Ukraine. Instead, they call for stricter border control and the scrapping of climate policies, which they claim harm farmers and industry.
With the Parliament holding the power to reject the Commission’s proposal, the stakes are high. A resolution adopted in May made one thing clear: MEPs believe the current level of national contributions is insufficient to meet the EU’s growing needs.
As negotiations begin, a clash of competing visions for Europe’s future is set to unfold — one that will shape everything from social policy and agriculture to defence and climate action.
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EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
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