Sweden and five other countries threaten to block EU budget unless spending is cut sharply

The EU budget must be reformed from the ground up, "we must choose," says a letter signed by leaders from Germany, the Netherlands, Denmark, Austria, Finland and Sweden, according to the Financial Times newspaper.

"If there are no cuts of hundreds of billions, there will be no agreement this year," a diplomat from one of the countries told the newspaper.

The dispute concerns the EU's long-term budget for the years 2028-34. The six leaders want to devote more resources to defence and innovation, in light of growing challenges in these areas. But a group of 17 countries, including Spain and Italy, believe that agricultural support should be allowed to grow.

The Irish presidency of the Council of Ministers is currently working on a compromise.