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EU Proposes €2 Trillion Budget Amidst Controversial Funding Cuts
2025-07-17 12:29:10
Europe
Government
Economy

EU Proposes €2 Trillion Budget Amidst Controversial Funding Cuts

The European Commission has proposed a significant increase in the EU budget for the period starting in 2028, setting it at two trillion euros. This proposal emphasizes boosting competitiveness, allocating 451 billion euros to support sectors such as clean technologies, digital, and biotechnologies, as well as defense and space industries.

The traditional pillars of common agricultural policy and regional funding are to be consolidated into a new partnership fund, with a total of 865 billion euros. However, this restructuring could potentially reduce funds available to farmers and regional projects.

Additionally, 100 billion euros are earmarked to support Ukraine's recovery and EU integration efforts. In light of economic challenges, the EU plans to generate more revenue through new taxes on electronic waste and tobacco, and a levy on large corporations.

This budget proposal has sparked criticism over perceived funding gaps in climate and agricultural policies, while France has secured a reduction in its contribution.

Related news on that topic:

EU Unveils Ambitious €2 Trillion Budget Proposal for 2028-2034

The European Commission has presented a groundbreaking proposal for the next EU budget, covering the period from 2028 to 2034. This ambitious draft outlines a financial framework of nearly €2 trillion, marking a significant increase from the current budget. The proposed budget aims to address various priorities, including defense, security, and environmental sustainability, while also enhancing the EU's economic competitiveness. Commission President Ursula von der Leyen described the budget as a 'new era' for Europe, emphasizing its role in reinforcing the EU's independence and capacity to respond to unforeseen challenges. Notably, the draft suggests a substantial increase in funding for defense and space programs, allocating €131 billion, which is five times more than previous budgets. Additionally, the proposal includes a €400 billion fund to support struggling industries and a €100 billion off-budget fund dedicated to long-term assistance for Ukraine. There's also a focus on reinforcing the EU's infrastructure and military capabilities, with a tenfold increase in investment, and a tripling of funds for migration and border control. The plan introduces new sources of revenue, such as emission trading systems and specific taxes on tobacco and electronic waste, to support the budget's ambitious scope. However, the proposal also includes controversial cuts, particularly to the Common Agricultural Policy, which is set to decrease by nearly 30% in real terms. As negotiations commence with EU member states and the European Parliament, the proposed budget reflects the Commission’s strategic priorities for a resilient and autonomous Europe, setting the stage for extensive discussions in the coming years.

EU's €2 Trillion Budget Proposal Faces Backlash from Member States

The European Commission has proposed a significant increase to the EU budget, aiming for a total of €2 trillion for the 2028-2034 period. This ambitious plan, led by European Commission President Ursula von der Leyen, is designed to address key areas such as defense, migration, and research, with a substantial portion dedicated to climate and biodiversity efforts. The proposal also includes new taxes on large corporations, tobacco, and electronic waste to generate additional revenue. However, the proposed budget has stirred controversy and resistance among member states and the European Parliament. Critics argue it is excessively large and does not adequately address priority areas, while others are displeased with proposed cuts to agricultural subsidies and cohesion funds. The budget must gain unanimous approval from all 27 EU member states and the European Parliament, making the negotiation process potentially complex and contentious. As discussions unfold, the budget may undergo adjustments, potentially resulting in a smaller financial framework than initially proposed, despite being larger in real terms.

Read 3 more recent news on this topic

The press radar on this topic:

AFP
16. Juli 2025 um 17:52

Two Trillion Euros: The EU Commission's Proposal for the Budget from 2028

The EU Commission has presented its proposal for the next EU budget from 2028. With a volume of two trillion euros, it is significantly higher than the previous budget. The focus is on competitiveness, with 451 billion euros for investments in security, space, defense, clean technologies and digitalization. The traditionally largest items, agricultural policy and regional funding, are to be combined into a new fund, which means cuts. In addition, 100 billion euros are planned for Ukraine aid and..
Deutsche Welle
17. Juli 2025 um 09:23

Proposal for new EU budget faces headwinds

The new EU budget proposal from Commission President von der Leyen envisages a record budget of 2 trillion euros, including new corporate levies. This is facing widespread criticism from the federal government, the business community, and environmental groups. The key points are the repayment of the Corona loans, funds for defense and competitiveness.
EURACTIV.com
17. Juli 2025 um 03:51

France secures €1.6 bln cut in planned EU budget contribution

France has secured a €1.6 billion reduction in its planned EU budget contribution for 2026, lowering the expected payment to €27.6 billion. This move offers relief to Prime Minister François Bayrou's austerity plan and undercuts the far-right Rassemblement National's demand to slash France's EU contributions, which they claim was endorsed by voters in the European elections.
DER SPIEGEL
17. Juli 2025 um 06:31

Federal Budget 2026: Ministries Demand Over 30 Billion Euros Additional - DER SPIEGEL

The ministries of Transport and the Interior are demanding additional funds of over 30 billion euros for the federal budget 2026, even though the key figures have already been decided. Finance Minister Klingbeil is surprised, as both departments had spending reserves in recent years. He wants to try to dissuade the additional demands in top-level talks, as all SPD departments are adhering to the guidelines. However, such special requests have been common in the past. The Finance Minister is pl..
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