The European Commission, led by President Ursula von der Leyen, has proposed a substantial increase in the EU’s budget, aiming for a two trillion euro framework for the period spanning 2028 to 2034. This represents a significant expansion beyond the current financial framework of approximately one trillion euros, augmented by the 750 billion euro “Next Generation EU” program implemented in response to the COVID-19 pandemic.
The proposal focuses on two principal pillars. National and Regional Partnership Plans would receive 865 billion euros, while a competitiveness fund is slated for 410 billion. Additional funding will be allocated to key programs including “Erasmus+” and “Agora-EU” comprising roughly three percent of the total budget and “Global Europe” which is earmarked for around 200 billion euros to support EU enlargement, aid to Ukraine and broader economic cooperation. Existing debt repayment obligations from the COVID-19 era are also factored into financial planning.
President von der Leyen’s plan seeks to streamline the budgetary process by simplifying the existing structure. The current system, characterized by 52 distinct programs with individual funding logics, is proposed to be reduced to 16. This aims to enhance flexibility, particularly during times of crisis and enable support for emerging priorities such as affordable housing. The Commission intends to conduct individual negotiations with member states regarding Partnership Plans, potentially attaching conditions related to areas such as the rule of law.
The proposed budget outlines approximately 300 billion euros for agriculture and fisheries, with at least 218 billion euros allocated to less developed regions. Within the Partnership Plans, 14 percent of resources are designated for social spending and 35 percent for climate action. Border management and migration policies are set for a threefold increase in funding.
The proposed competitiveness fund prioritizes digital transformation, with investments intended to increase fivefold. Funding for clean technologies and decarbonization efforts is targeted to increase sixfold. A significant expansion is planned for defense and space initiatives, with an anticipated fivefold increase in expenditure, reaching 131 billion euros.
The “Erasmus+” program, supporting student exchange, youth work and educational opportunities, is slated for a 50 percent budget increase. Funding for civil society initiatives will be consolidated under the “Agora-EU” program. The Commission intends to maintain current levels of contributions from member states while exploring “new revenue streams” to support this expanded budgetary framework.