European Commission Proposes Historic 2-Trillion-Euro Budget for 2028-2034

The European Commission has unveiled a bold budget plan for the European Union's next multiannual financial framework, spanning 2028-2034. The proposed budget of 2 trillion euros is nearly a 15% increase from the current 2021-2027 cycle, with an average allocation of 1.26% of the bloc's gross national income. European Commission President Ursula von der Leyen hailed the plan as "larger, smarter, and sharper," aimed at strengthening Europe's independence, addressing its challenges, and reinforcing its competitiveness.

Key Takeaways:

The proposed 2-trillion-euro budget for 2028-2034 represents a significant 15% increase from the current 2021-2027 cycle.
The new budget plan allocates an average of 1.26% of the European Union's gross national income, up from around 1.1% in the current cycle.
A 409-billion-euro European Competitiveness Fund will focus on reinforcing the EU's defense sector, accelerating industrial innovation, and supporting the transition to clean energy.
The fund's defense and space allocation of 131 billion euros is five times more than in the current multiannual financial framework.
The European Commission is proposing new revenue streams, including a tax on companies with annual net turnover above 100 million euros in any EU country.
The 131 billion euro defense and space allocation accounts for nearly 32% of the total European Competitiveness Fund.
The European Parliament and EU member states will need to endorse and approve the budget proposal, which lacks unanimous agreement.

Statistics:

Proposed 2-trillion-euro budget for 2028-2034 represents a significant 15% increase from the current 2021-2027 cycle.
Average allocation of 1.26% of the EU's gross national income from 2028 to 2034.
European Competitiveness Fund of 409 billion euros, with 131 billion euros allocated to defense and space.
The defense and space allocation accounts for nearly 32% of the total European Competitiveness Fund.
Contribution from EU member states is expected to cover most of the budget, with the Commission proposing new revenue streams.

Sources:

(Xinhua via COMTEX)
COMTEX_467373890/2084/2025-07-16T15:35:03