Germany faces setback as EU budget compromise proposes limited cuts

EU budget compromise proposes limited cuts to the European Commission's spending plan for 2028-34. Cyprus, the EU's rotating presidency, suggests reducing funding for competitiveness and defence while preserving allocations for agriculture and regional development. The proposal, which would cut the budget by around 2%, is expected to be a contentious issue at the upcoming EU summit, with some member states welcoming it as a balanced compromise and others criticizing it as unaffordable and unbalanced.