Germany expresses its inability to endorse the EU's colossal budget proposal
The European Commission has unveiled a proposed EU budget for the years 2028-2034, totalling nearly €2 trillion, aiming to support Europe's strategic autonomy and resilience. The budget, equivalent to about 1.26% of the EU’s gross national income (GNI) over this period, represents a real-terms increase of about 60% compared to the current Multiannual Financial Framework (MFF).
Key features of the proposed budget include greater flexibility to respond quickly to crises and new priorities, simplified and harmonised funding programmes, National and Regional Partnership Plans for tailored local impact, a focus on boosting competitiveness, a balanced revenue system, and a 10% increase in the Interreg programme budget.
However, the budget proposal has sparked unprecedented criticism across the EU, including from the European Parliament and several member states. Hungarian Prime Minister Viktor Orbán explicitly opposed the proposal, calling it akin to "putting our country under the guillotine." The plan’s reliance on national contributions remains high, which is a significant point of dispute between member states and EU institutions.
The approval requires unanimity among Member States in the Council and the consent of the European Parliament, with some national parliaments needing to ratify parts of the revenue system, making the path to final approval politically complex and potentially contentious.
The budget earmarks up to 100 billion euros for the reconstruction of war-torn Ukraine. However, Hungary criticizes the proposed EU budget, stating that it provides a massive funding boost to Ukraine at the expense of European farmers. Farmers are warning against cuts to their share of the EU budget, and a protest was held in Brussels against the proposed changes to the Common Agricultural Policy subsidies.
Germany opposes the commission's call for companies with a turnover of more than 100 million euros to pay more tax. On the other hand, France's Europe minister supports the commission's "ambition," while the Dutch finance minister considers the proposed budget to be "too high."
The EU Commission has put 451 billion euros under a "competitiveness" tag, with defense and space allocated 131 billion euros, a five-fold increase. The budget also includes substantial new "flexibility" funds for crises.
In summary, the EU’s 2028-2034 budget reflects an ambition to support Europe’s strategic autonomy and resilience but faces significant political hurdles due to disagreements over funding levels, transparency, and national contributions. The announcement of the EU budget sets the stage for two years of negotiations between the European Parliament and 27 member states.
- The proposed EU budget for the years 2028-2034, which includes a focus on boosting competitiveness and a balanced revenue system, has sparked debates in the realm of both politics and business, as several member states and the European Parliament have expressed critical views regarding the plan.
- The EU budget proposal, aiming to provide up to 100 billion euros for Ukraine's reconstruction, has ignited discussions within the general-news sphere, with farmers in Europe voicing concerns about potential cuts to their share of the EU budget and a protest held in Brussels against the proposed changes to the Common Agricultural Policy subsidies.
