Ursula von Der Leyen has announced her highly anticipated proposal for the European Union’s new budget worth 2 trillion euros between 2028 and 2034.
“This is a new era budget that fits European ambitions,” the European Commission president said Wednesday afternoon.
“It addresses the challenges of Europe. It strengthens our independence.”
Her blueprint remodels the budget structure along three main pillars.
- 865 billion euros for agriculture, fishing, unity and social policy.
- Competitiveness of 400 billion euros including research and innovation.
- 200 euros on external actions including Ukraine’s 100 billion euros.
Direct contributions from member states cover a large portion of the budget, but von del Reyen also envisages new EU-wide taxes on electricity waste, tobacco and corporate profits, to enable Brussels to raise additional revenues on its own.
All financial envelopes are subject to compliance with the rule of law. Democratic Backslide In Hungary.
“The rule of law is essential,” von der Leyen said. “Ensure responsible spending and full accountability.”
Wednesday’s presentation will officially launch a political battle Member countries and European Parliamenteach constituency is expected to be prolonged, tough, and explosive, to fight teeth and nails and ensure their priorities.
Von Der Leyen’s proposal for the New Multi-Annual budget is strongly shaped by the experience of Her first mission He is at the pinnacle of a powerful executive.
Shortly after her arrival in Brussels, Vondel Reyen, a little-known figure picked from Berlin, forced her to design, repair and negotiate a vaccine contract for the 27 member states. She was then tasked with navigating the outcome of Russia’s full-scale invasion of Ukraine, a surge in energy prices, record-breaking inflation, fierce competition from China, and the consequences of a series of catastrophic natural disasters.
Sweeping Tax President Donald Trump’s president is the latest chapter in a series of consecutive crises that have placed Bullock’s finances under unprecedented tensions, seriously challenging his collective ability to respond to unexpected events.
With these constraints in mind, Von Der Leyen reformed the long-term budget to provide greater room for hard, flexible and steerable services to pilot the situation both within and outside Europe.
“It’s strategic, more flexible and more transparent,” she said.
This strategy represents an ambitious departure from traditional thinking that underpins budgets, formally known as the Multi-Year Financial Framework (MFF), which has previously been based on well-defined allocations to specific programs managed by the European Commission’s specialist department.
Three main pillars
One of the most eye-catching revisions to Von Der Leyen’s proposal is merger Of the two largest envelopes in the budget, the Common Agricultural Policy (CAP) and the Cohesion Fund, which includes subsidies to farmers.
Instead of being separate entities, they are both grouped under the first column. This is a national and regional partnership, totaling 865 billion euros worth.
The two envelopes appear to be significantly reduced compared to current budgets where caps and cohesions compensate for more than 60% of the allocation.
The deep cut is set to be fiercely contested by southern countries wary by eastern countries that rely on a backlash from the agricultural sector and on cohesion policies to close the gap with the richer member states.
At the same time, reductions will be supported by western and northern countries. The West has consistently advocated a major focus on contemporary priorities, including climate action, defense, security, research, innovation and cutting-edge technology.
This plea was reinforced last year Landmark Report Former Italian Prime Minister Mario Draghi called for “radical change” to reverse the steady decline in Bullock’s competitiveness and to face intense competition from the US and China.
Von Der Leyen’s response is the European Competitiveness Fund worth 400 billion euros. The fund aims to harness private capital to maximize the impact of public funds.
The third pillar of the draft budget combines all the tools of global Europe-based foreign policy to fit 200 billion euros. Here, von der Leyen proposes to establish a 100 billion euro fund dedicated to helping to recover and rebuild Ukraine.
This idea follows a step of 50 billion euros Ukrainian Facilities The leader approved aid in early 2024 to make it more reliable and predictable. By establishing the facility, Brussels protected the spending of aid on internal conflicts and individual vetoes.
Von Der Leyen is keen to replicate and expand the model on the next budget and secure Ukraine where the registration process is available. Under Hungary’s vetothe US is taking a step back, so we can rely on the support of the Bullock.
Parallel to the three pillars, the Blueprint features 292 billion euros of other expenses, including debt repayments from the Covid era, estimated at between 2.5 billion and 30 billion euros per year, a significant factor that did not exist in the previous budget.
The committee previously said grants from the Recovery Fund should be fully repaid through so-called Emissions Trade System (ETS), tariffs and newly proposed taxes, and should raise 58.2 billion euros per year.
However, its own resources are notoriously difficult to approve, as they face resistance to retention from member states.
