The European Union’s foreign embassies have been told to cut back on “lavish” parties and private drivers after a massive overspend of £36million.

Brussels urged to drop spending on boozy bashes by around five per cent after breaching its own spending rules.

The “severe austerity measures”, which were enforced on the European External Action Service, also sparked concern about security.

Eurocrats are even mulling over the closure and sale of 145 worldwide delegations in a bid to balance Brussels' lopsided books.

A spokesman said: “We have reduced all the expenditure we possibly could, we operate with reduced car fleets, security equipment and office supplies.

“The mission and representation budgets have been cut in half since 2023 despite the crippling effects on our global outreach.”

Cuts resulted in an annual reception at the United Nations General Assembly being shelved.

The event looked set to enable Brussels to put pressure on developing nations to side with the bloc, including on issues like Ukraine.

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The continental club was hoping to spend around £17million on a new residence in New York amid concern the current three-bedroom property was too small to host parties.

There have also been reports that diplomats posted overseas have been barred from buying stationery.

Stefano Sannino, the EEAS’ deputy secretary-general, said it was “heavily under-budgeted” earlier this year.

The Italian bureaucrat told the European Parliament that a 7.1 per cent increase in its budget to €880.2million had failed to match inflation.

Further pressure was piled on the EEAS after Josep Borrell opted to organise the traditional twice-yearly informal meeting of foreign ministers in Brussels, instead of allowing Hungary to host the event as planned.

Borrell, who is Vice President of the European Commission, made the switch amid concern about Eurosceptic Hungarian leader Viktor Orban.

Responding to the latest attempt to cut back on spending, ex-MEP David Campbell-Bannerman told GB News: “This is the EU’s concession to the cost of living crisis: cut a round of drinks for its bureaucrats.

“Yet another Brexit benefit, we are not paying for such lavish hospitality now.”