EU's Historic Budget Proposal: €2 Trillion Over the 2028-2034 Period by the European Commission
In a historic move, European Commission President Ursula von der Leyen has unveiled a **€2 trillion budget proposal** for the period 2028-2034, aiming to equip Europe for independence, prosperity, security, and sustainability across the next decade. This ambitious package, representing about 1.26% of the EU's gross national income, is the most significant budget ever proposed by the European Commission.
The proposed budget includes several key details that reflect the EU's intent to lead in technological innovation, green transition, and strategic autonomy, including defence capabilities.
### European Competitiveness Fund
The European Competitiveness Fund, increased to €131 billion, will focus on investments in defence, security, and space, with the aim of boosting Europe's supply chains, scaling innovation, and leading globally in clean and smart technologies. The fund will also provide significant allocation for workers' skills enhancement and support for small and medium enterprises (SMEs).
### Support for Farmers' Incomes
While the specifics of farmers' income support are not yet detailed, the budget maintains support for rural communities, aligning with cohesion and territorial policies that typically include agricultural funding.
### Special Fund for Ukraine
The proposal sets aside up to €100 billion outside the main budget ceiling for Ukraine, underscoring a long-term EU commitment to Ukraine's recovery, reconstruction, and strategic partnership.
### Global Europe Programme
The budget allocates €200 billion to the Global Europe Programme, enhancing the EU's global role via development aid, humanitarian assistance, and partnerships, focusing on resilience and sustainable development worldwide.
### Other Notable Allocations
The budget includes reinforced funding for Horizon Europe (research and innovation flagship), increased investment in the Connecting Europe Facility (€81 billion) to support cross-border infrastructure and digital connectivity, and an enhanced Erasmus+ program with a 50% budget increase to empower youth and skills development.
The budget's scale and diversity reflect the EU's ambition to be a global leader. However, it has faced criticism from civil society groups for lacking sufficient focus on green industrial transformation, social safeguards, and excluding fossil fuel industries to ensure a just and sustainable transition.
The dedicated Ukraine fund signals a strong political and financial commitment, enabling quick response and long-term reconstruction, marking Ukraine as the EU’s most strategic partner. The emphasis on flexibility and simplification aims to allow the EU to adapt effectively to unforeseen challenges and evolving priorities.
The budget proposal will now be discussed by the 27 member states, the European Parliament, and Brussels within a maximum of two years. The President has declared that member states' contributions will remain the same as before. The new budget represents a 0.13% increase from the 1.13% for the 2021-2027 budget. The project will cover a period of 7 years.
The budget proposal is a significant step towards the EU's future, balancing ambitious investment in innovation, defence, and global partnerships with continued support for cohesion, skills development, and rural communities. The proposal was presented by Ursula von der Leyen in Brussels, Belgium.
- The European Competitiveness Fund, enhanced to €131 billion, will potentially lead Europe to global dominance in clean and smart technologies, while also focusing on investments in defence and security, as well as supporting worker skills enhancement and small and medium-sized enterprises.
- The proposed budget's allocation of up to €100 billion outside the main budget ceiling for Ukraine demonstrates a strong political and financial commitment, providing quick response and long-term recovery, reconstruction, and strategic partnership to this region.
