EU Commissioners Adopt 2028-2034 Budget Proposal, Allocating Two Trillion Euros

The College of EU Commissioners has adopted the proposal for the Multiannual Financial Framework for the next seven years ( 2028-2034 ). This was announced by European Budget Commissioner Piotr Serafin during a hearing before the European Parliament's Budget Committee. "The next MFF will be an ambitious EU budget, with an overall allocation of € 2 trillion ," the Commissioner explained, adding that the programme will be structured "around three key functions": "support to Member States through national and regional partnership plans; support to beneficiaries and businesses through the Competitiveness Fund; and support to partners through Global Europe."

The new structure of the EU budget includes a single centralised fund for each country which brings together the funds of the Common Agricultural Policy (CAP) and Cohesion Policy, and new “own resources”, which include in particular new European “taxes” on tobacco , electronic waste, the profits of large companies and emissions (ETS), plus a part of the “climate border duties” (CBAM).

European Commissioner for Budget, Piotr Serafin (Ansa)

Serafin emphasized that the proposed structure is "much leaner and more flexible" than the current one. The Commissioner then outlined the objectives the current proposal intends to achieve: simplification, strategy, and flexibility. "First," he said, " every euro from the EU budget must be easily accessible to the people and projects it is intended to support, and that's what we mean by simplification." The Budget Commissioner continued: "Second, it must be spent on the things that matter most to European citizens , where the EU budget can achieve better results than national budgets. That's what we mean by strategy," Serafin added. "Third, we need room to react to unforeseen circumstances , act quickly in a crisis, or shift to new priorities. That's flexibility."

The Commission's proposal for the Multiannual Financial Framework includes the creation of a "dedicated crisis mechanism with a capacity of up to almost € 400 billion. Because crises are now the norm, not the exception," explained EU Executive President Ursula von der Leyen , presenting the proposal at a press conference. "I want to be clear: it is not for ordinary expenses but only as an option for unforeseen events, with guarantees and clear rules for its activation," von der Leyen emphasized. "I've been following crises since the beginning of my mandate: first Covid , then the energy emergency , then the Russian war in Ukraine . Each time, it was difficult to react quickly with the necessary financial firepower, because the current budget is 90% fixed . So we had to resort to Article 122, which is not optimal," explained Von der Leyen, referring to the clause in the Treaties on the functioning of the EU for emergencies and underlining the need for a specific instrument to respond to crises that are as unforeseen as they are increasingly frequent.

According to the slides shown at the press conference, the Multiannual Financial Framework presented today represents a contribution of 1.26% of member states' GDP , higher than the current rate of around 1.1%. However, the President of the European Commission explained that, thanks to the new own resources provided for by the MFF, "member states' contributions will remain stable." Von der Leyen also emphasized that a "review" of the multiannual budget will be expected when other countries join the EU during the seven-year term.

The new budget, according to the accompanying note, includes increased funding for migration management, strengthening the EU's external borders , and internal security . €34 billion will be allocated, triple the amount provided in the previous budget. Member States will receive support from the Union to respond quickly and effectively to developments on the ground. The funds will also help Member States strengthen their online and offline law enforcement capabilities, equip our border guards with the appropriate tools to protect external borders, and implement a fair and rigorous migration management system under the Pact on Migration and Asylum.

The Social Climate Fund , in the 2028-34 multiannual budget, will amount to approximately €50 billion , unchanged from the current Multiannual Financial Framework (MFF). A senior EU official made this statement regarding one aspect of the new seven-year budget presented today. The fund, he added, will, however, be integrated into the national plans that form the backbone of the new MFF. The senior official also added that rule of law conditionality will apply to all funds included in the budget.

"I have had extensive experience with European funds, and the need for simplification and flexibility is clear. The mid-term review of Cohesion programs, for example, is a clear response to a genuine need," commented Raffaele Fitto, Executive Vice President of the European Commission, when asked if he was satisfied with the role of Cohesion in the multiannual budget presented. "It was not an easy task, but my previous experience allows me to say that the Commission's proposal will be discussed with Parliament and the Council, which will certainly improve it."