European Union member countries on Tuesday agreed on a significantly simplified framework for the bloc's next long-term budget for the years 2028 until 2034.
Under the plans, EU funds to be spent on various projects and initiatives, such as defence procurement or agricultural policy, are to be structured under three main pillars, down from seven spending categories in the current multiannual budget framework.
Funds for agriculture and regional support within the EU are to fall under the umbrella of economic, social and territorial cohesion.
The pillar for competitiveness includes funding for strengthening the EU's single market and defence spending.
A third pillar covers the EU’s foreign policy.
German State Minister for European Affairs Gunther Krichbaum said Germany is satisfied with the approach.
"It’s also about ensuring that we can hold our own amid the global pressures we currently face," he said on the sidelines of budget negotiations in Luxembourg.
Critics have long argued that the current budget structure is overly complex.
It is not yet clear how much money the new multiannual budget will amount to as lengthy negotiations are currently under way in the EU.
The German government has rejected a recent compromise proposal by the rotating Cypriot EU presidency as "absolutely disappointing."
A 2% reduction in the European Commission’s proposed budget of €1.76 trillion ($2.04 trillion), as suggested by Cyprus, is far from sufficient. Instead, Berlin is calling for substantial cuts across the board.
Long and difficult negotiations are expected.
