EU spending should be capped at 134 billion euros next year, the bloc's governments said Wednesday, setting the stage for a new round of traditionally testy budget negotiations. EU members states usually disagree with the European Parliament over the bloc's budgets, with the governments typically seeking to limit expenditures while the legislature often advocates more spending. Most of the EU money flows back into the bloc's 28 countries, for everything from agricultural subsidies and support for poorer regions to research and education programs.

The European Commission, the European Union's executive, had proposed that the bloc spend 135 billion euros in 2017 - a decrease of 6 percent from this year's budget, due mostly to the slow start of regional aid programs in its new seven-year budgeting cycle. But the governments want to pull the financial belt tighter next year, with their EU ambassadors on Wednesday proposing a decrease of 7 percent. Their plan "ensures good value for money by taking care that the financial resources match the needs," said Vazil Hudak, chief negotiator for Slovakia, which currently holds the EU's presidency.

"More than ever we need to ensure that the EU budget is focused on key priorities and enables the EU to address the challenges that it is facing," he added, pointing to the need for growth, jobs, reinforced security and a response to Europe's migration crisis. The ambassadors' proposal is due to be formally adopted in September, a move expected to be a formality. The governments will then have to hash out a compromise with the parliament.