||The European Union summit in June 2005 failed to approve the Union’s financial perspective for years 2007-2013. Thus decision has sparkled fears (or hopes) of a more fundamental crisis within the European Union that still grapples with its recent enlargement that have increased number of member countries to 25. The enlargement has made the budgetary discussions even more complex, by adding yet another layer of discontent as new poor member states compete for funds with incumbents. In this paper we argue, however, that the core of the argument lies well within the “old Europe”, namely in the budget bias towards the agriculture expenditures that is difficult to justify either by efficiency or solidarity arguments. We also argue that the June 2005’s decision provides the Union with an opportunity to reconsider its budgetary priorities. Such reconsideration is needed as the Union has expanded, become more heterogeneous and new member states were excluded from some budgetary decisions taken prior the enlargement.