The European Union’s budget commissioner has said he is “optimistic” that a deal on the bloc’s budget for the years up to 2034 can be reached during Ireland’s European presidency.

Piotr Serafin made the remarks as he arrived at an informal meeting of European Affairs ministers in Dublin Castle.

Ireland’s Minister of State for European Affairs Thomas Byrne, separately, said he is “absolutely confident” a budget agreement can be reached by the end of the year.

Progressing negotiations on the EU budget, the multiannual financial framework (MFF) for 2028-2034, is a priority for the State’s presidency of the Council of the European Union.

Byrne has been meeting EU counterparts to determine potential compromises. He was due to have bilateral talks with ministers from key countries like Germany, Spain and France on the sidelines of the two-day informal EU General Affairs Council meeting in Dublin.

The MFF funds schemes like the Common Agricultural Policy payments to farmers as well as “cohesion” funding to develop poorer regions. Some countries want more spent in areas like defence.

There has been division among member states on the proposed scale of the seven-year budget.

Germany and five other northern European countries, known as the “frugals”, have been resisting plans to increase the budget to nearly €2 trillion.

Last week the leaders of Germany, Denmark, the Netherlands, Austria, Finland and Sweden backed plans to conclude the budget talks by the year-end, but not at any price. They signalled readiness to compromise but retained their opposition to further common EU borrowing.

A loose coalition of about 16 member states led by Spain and Italy is on the other side of the debate, pushing for more flexible repayment terms for pandemic-era funding and, in the new MFF, “joint borrowing for loan support”.

Serafin was asked about the prospect of a budget deal during the Irish presidency, which finishes at the end of the year, and said, “it’s a good sign that the member states have started to engage [on the MFF] “.

He added: “Without serious engagement, even the best presidency – and the Irish presidency is one of the best – will not be able to solve it. But I’m optimistic.”

Meanwhile, Byrne said: “I’m absolutely confident we can achieve this [a budget deal] by the end of the year because I think we need to.” He added that the funds need to be in place by January 1st, 2028.

“Our farmers, our rural communities, our industries, European citizens will be waiting on funds and that’s why it’s absolutely important that we see today where the compromises can be reached.”

Meetings will continue in Dublin Castle on Friday when there will be discussions on enlargement.

Byrne met enlargement commissioner Marta Kos on Thursday. Representatives of applicant countries including Montenegro and Ukraine are in attendance over the two days at Dublin Castle.

The Fianna Fáil TD said more than half of the negotiating chapters for Montenegro have been closed and “our objective is to close the rest of them by the end of this year” in advance of an accession treaty.

“We also have Albania, who are making very good progress in their discussions, and … with Ukraine and Moldova. We are hoping to open all negotiating chapters by the end of our presidency. But that will require work that requires unanimity among the member states.”