European Commission advocates for an increase in multiannual budget to 2 trillion euros
The European Commission has proposed a dramatic increase in the European Union's long-term budget, calling for a total of 2 trillion euros between 2028 and 2034. President Ursula von der Leyen presented the plans in Brussels on Wednesday, describing them as a turning point for the EU’s future.
“This is a budget for a new era, one that matches Europe’s ambition, addresses Europe’s challenges and strengthens our independence,” von der Leyen said. She called it “the most ambitious multiannual budget ever.”
Major increase and structural shift
The proposed budget would amount to 1.26 per cent of the EU’s gross national income (GNI), a significant jump from the current 1.1 per cent for the 2021–2027 period, which totals about 1.2 trillion euros (excluding the exceptional 800 billion euro COVID-19 recovery fund, NextGenerationEU).
The Commission is also proposing significant structural changes. Traditional funding pillars such as the Common Agricultural Policy (CAP) and cohesion policy would be merged into “national and regional partnership plans” with a combined budget of 865 billion euros. This restructuring has drawn sharp criticism from both farmers and Members of the European Parliament (MEPs), who fear it could weaken established programs and reduce transparency.
Farmer concerns and assurances
As von der Leyen presented the budget inside the Berlaymont building, several hundred farmers protested outside, concerned about potential cuts to agricultural funding. Belgian organisations, including ABS, the Farmers’ Union and FWA, were joined by groups from Germany, Spain, France and Portugal.
Despite the restructuring, the Commission insists that key elements of the CAP will be protected. Direct income support will remain intact, with 300 billion euros reserved for that purpose, while 218 billion euros are earmarked for investments in less developed regions.
But agricultural advocates remain unconvinced. “After all, small-scale, family-run Flemish urban agriculture has different needs than Eastern European mega-farms,” ABS argued during the demonstration. They also warned against administrative burdens and “a relentless drive for control.”
Mixed reaction from parliament
The Commission’s proposal met immediate resistance in the European Parliament. In a joint press release, MEPs Siegfried Mureşan (EPP), Carla Tavares (S&D), Sandra Gómez López (S&D) and Danuše Nerudová (EPP) criticised the budget’s foundations. “The starting point demonstrates an astonishing lack of ambition,” they stated.
“However you try to wrap this up, what we have here is a freeze on investments and expenditure, plus the repayment of the loans for NextGenerationEU. This is the status quo, which the Commission has always said is not an option," the MEPs continued.
Parliament had previously spoken out against the proposed fund mergers. MEPs argue that rolling agricultural and cohesion funding into broader national plans “threatens to undermine policies that have delivered concrete results and improved living standards.” They fear it may weaken the role of local governments and set different levels of government and farmers against each other.
“We will not approve a budget that promotes fragmented national plans without a link to European objectives,” the MEPs added. “Europe needs a shared vision, not 27 different shopping lists.”
Strategic priorities and new revenue
Beyond agriculture and cohesion, the proposal allocates nearly 410 billion euros to a new Competitiveness Fund aimed at supporting the green and digital transitions. Horizon Europe, the EU’s flagship research programme, would see its budget double to 175 billion euros.
Defence spending would rise fivefold to 130 billion euros, while 200 billion euros would go toward foreign policy and enlargement efforts. A particularly notable figure is the 100 billion euros earmarked for Ukraine. “This is a long-term commitment to the recovery and reconstruction of Ukraine,” said budget commissioner Pyotr Serafin.
To finance the expanded budget, the Commission aims to introduce new sources of EU revenue. While von der Leyen said she wants to keep national contributions “stable,” the Commission plans to raise nearly 60 billion euros annually through new levies, including a tax on the turnover of large companies, a tax on electronic waste, and a share of revenue from CO₂ emissions and the carbon border tax.
The presentation of the proposal marks only the beginning. The multiannual budget must be approved by both the Member States and the European Parliament, an outcome that is far from guaranteed, given the political tensions and financial stakes involved.
Ursula von der Leyen, President of the European Commission, speaks at a press conference about the EU budget in Burssels on 16 July 2025. © PHOTO ANSGAR HAASE / DPA
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