The bloc is split between frugal countries demanding cuts of several hundred billions to the nearly €2 trillion proposal on the table and a rival camp of southern and eastern states, known as the Friends of Cohesion, opposing reductions.

In a concession to the Friends of Cohesion, Ireland shielded farmers’ subsidies and regional payouts, that account for half of the total budget and are politically sensitive, from any cuts.

Instead, the bulk of the reductions came from foreign aid which was cut by €38 billion; competitiveness which was axed by €75 billion and the EU’s administrative costs which were reduced by €10 billion.

Dublin also scrapped a rainy day fund, known as the "EU Facility cushion," that allowed the European Commission to deploy cash to tackle unforeseen emergencies throughout the seven-year budget cycle.

However, Ireland’s proposal is unlikely to satisfy the frugals, who have warned against disproportionate cuts to new EU-wide priorities such as competitiveness, defense and development funding.

“The Irish proposal is a disappointment and not even close to a landing zone. The steep increase in MFF spending compared to today is unaffordable and financially not viable at all. By favouring policy priorities of the 20th century the proposal fails to prepare the EU for the 21st century,” an EU diplomat said.