EU’s two-trillion-euro budget bazooka: What’s inside?
EU’s 2028‑2034 Budget Sparks Heated Negotiations
After a briefing in Paris, the 27 member states now face a decade‑long budget that will shape the Union’s economy, agriculture, defence and climate agenda.
Key Spending Themes
- Competitiveness Fund – The Commission is proposing a €451 billion investment to drive the clean, digital, health, defence and space sectors, a move that follows Mario Draghi’s call for an annual €750‑800 billion outlay.
- Agriculture – A €300 billion earmark will support farmers, but the CAP overhaul risks shifting funds to other priorities. France’s agriculture minister warned against a “back‑turn” that could diminish direct aid to regional farmers.
- Climate Action – 35 % of the total budget, roughly €650 billion, will be earmarked for the EU’s environmental goals, though the World Wildlife Fund cautioned that absorbing a key programme into the competitiveness fund could “defund vital nature and climate action.”
- Rule of Law – Future allocations will be tied to democratic values, with the stipulation that member states protect judicial independence and civil liberties if they wish to receive EU funds. Hungary’s EU minister criticized the measure as a politically‑driven tool.
- Beyond Europe – The Union proposes a €200‑billion fund to invest abroad and strengthen border partnerships, a gesture welcomed by humanitarian groups after the Trump administration’s deep cuts to U.S. foreign aid.
Negotiation Landscape
Brussels wants to bolster the Union’s long‑term budget by balancing economic growth, farmer support, defence spending and debt repayment. Member states, however, are wary of a “biggest budget” that could strain national finances.
Sweden’s EU Minister Jessica Rosencrantz stated, “In a time of great economic pressure, the answer can’t be more money and a bigger budget.”
Future Outlook
Two years of negotiations are now underway between the EU Parliament and member states. The Union’s funding comes largely from member states’ share, tax‑based resources, and customs duties, setting the stage for a debate that will shape the Union’s trajectory for the next decade.
