The European Commission unveiled its proposal for a nearly EUR 2 trillion budget for 2028-2034 today, aiming to give Europe the resources it needs to tackle growing challenges from security threats to climate change while staying competitive in the global economy, according to a press release from the European Commission.
The Multiannual Financial Framework represents 1.26% of the EU’s gross national income and marks a major overhaul of how EU money gets spent, with more flexibility to respond quickly to crises and simpler ways for people and businesses to access funding. Commission President Ursula von der Leyen said the budget will help protect European citizens, strengthen Europe’s social model, and make European industry thrive during uncertain times. The proposal includes five new revenue sources that would generate EUR 58.5 billion per year, reducing pressure on national budgets while funding EU priorities.
The new budget reflects Europe’s reality: the continent faces ongoing challenges in security, defense, competitiveness, migration, energy, and climate resilience that aren’t going away. The Commission wants to redesign the EU budget to be more streamlined, flexible, and impactful, with the ability to deliver on core policies while addressing new priorities. Key changes include National and Regional Partnership Plans that bring together different EU funds under one strategy, making it easier for member states to use the money effectively. The plans will focus on cohesion and agricultural policy, with 14% of national allocations required to go toward skills, poverty reduction, social inclusion, and rural areas.
A new EUR 409 billion European Competitiveness Fund will invest in strategic technologies across four areas: clean transition and decarbonization, digital transition, health and biotech, and defense and space. The fund will operate under one rulebook and offer a single gateway for funding applications, making it easier to get EU money and attract private investment. This connects with the Horizon Europe research program, worth EUR 175 billion, to support projects from conception to scale-up. Together, these programs aim to keep Europe competitive in the global race for clean and smart technology.
The budget also prepares Europe for crises with a new mechanism that can provide up to EUR 400 billion in loans to member states when severe crises hit. Defense spending gets a major boost, with EUR 131 billion allocated for defense, security, and space—five times more than the previous budget. Migration management gets EUR 74 billion, triple the previous amount, to strengthen external borders and internal security. The military mobility part of the Connecting Europe Facility will be multiplied tenfold to support dual-use infrastructure and boost cybersecurity.
For Europe’s role in the world, the budget sets aside EUR 200 billion for Global Europe to support enlargement, partnerships, and diplomacy. Ukraine gets special attention with EUR 100 billion potentially available over 2028-2034, with flexibility given the unpredictable nature of the country’s needs. The budget also continues education and cultural programs, with a reinforced Erasmus+ program and a new AgoraEU program to promote democracy, equality, and rule of law while supporting European cultural diversity and media freedom.
To pay for all this, the Commission proposes five new revenue sources: adjustments to the EU Emissions Trading System (EUR 9.6 billion annually), the Carbon Border Adjustment Mechanism (EUR 1.4 billion), an e-waste resource (EUR 15 billion), tobacco excise duty (EUR 11.2 billion), and a Corporate Resource for Europe that taxes large companies with annual turnover over EUR 100 million (EUR 6.8 billion). These changes would reduce reliance on national contributions while helping repay what the EU borrowed under NextGenerationEU.
