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Ireland, which holds the EU Council's rotating presidency, has been tasked with coming up with a compromise between the two. Their solution has pleased nobody. The Northern European hawks say it doesn't cut enough. The South/East say it hobbles the EU. This from the centre-right EPP in 🇪🇺Parliament:

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This is a silly comparison. 1. The EU is not a federation. 2. The size of budgets depends on what policies need to be funded from the budget. The reason the EU budget is so small is because national budgets are so large.