A coalition of eight member states, all net contributors to the EU budget, have demanded a substantial cut to the proposed €1,025 billion commitment for the next seven-year EU budget.

Germany, France, Austria, Finland, the Netherlands, Italy, the UK and Sweden have signed a joint letter saying that the European Commission’s spending proposal is “too high” and that cuts to the tune of €100-120 billion should be made.

“The Commission’s proposals for the next multiannual financial framework (MFF) 2014-2020 come at a time member states are making considerable financial efforts to support Europe and at the same time are undertaking tough consolidation efforts. European public spending cannot be exempt from these considerable national efforts,” says the letter, tabled during the first formal discussion on the next MMF.

“The increases of spending over the next MFF are significantly in excess of what is needed for a stabilisation of the European budget. The new MFF should not lead to an increase in national contributions to the EU budget. Accordingly, total spending for the 2014-2020 period needs to be substantially lower in order to meet these criteria.”

Expenditure in the next budget was not supposed to be on the agenda of ministers as the issue, the most contentious in the debate, was expected to be decided at the end of the negotiation process, probably towards the end of next year.

However, a Council source told The Times the fact that these net contributors were harping on the same issue from such an early stage meant they were not ready to bend easily.

Malta, as a net beneficiary in the current financial perspectives (2007-2013), has an interest in keeping its current status and would not benefit from such a drastic cut.“If there is a substantial cut in commitments from the large member states, there will be less money around and the net beneficiaries will suffer, Malta included,” the sources said.

“At the same time, the discussion is still in its infancy and positions might change along the way,” the source said.

Asked for its position in the current debate, a government spokesman did not want to go into the specifics, saying it was still too early.

However, he said Malta’s opinion was that the level of contributions from member states should remain at the same level as it is today.

Malta, in fact, is part of another faction formed by 13 EU member states, called Friends Of The Cohesion Group which are arguing against drastic cuts to the EU’s budget. The group last met informally on Sunday.

Following the publication of the Commission’s preliminary proposals in June, which also suggested a new mechanism of raising money through direct EU taxes, such as a financial transaction tax and VAT, Malta had said its main priority would be to defend its status as a net beneficiary.

During the current budgetary period, Malta will be receiving over a billion euros of EU funds, almost twice as much as it is contributing.

Following the first consultation period, the Commission is expected to publish its formal proposal.