In March 2024, the European Commission launched a public consultation to gather input on the priorities and design of the EU’s next long-term budget. The initiative received 1,600 contributions from citizens, regional governments, businesses, and other stakeholders.
Based on this process, on 16 July 2025, the Commission presented its proposal for the Multiannual Financial Framework (MFF) 2028–2034, with an approximate allocation of €2 trillion, equivalent to 1.26% of the EU’s average Gross National Income (GNI). This ambitious budget aims to build a more resilient, innovative, cohesive, and strategic Europe, capable of responding to emerging challenges such as global crises, geopolitical tensions, and eco-social transitions.
1. Simplification, Flexibility anda Territorial Approach
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The proposal outlines a more agile and coherent structure, with fewer programmes and easier access for citizens and businesses.
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Funding will be channelled through national and regional “Partnership Plans”, linked to priority investments and reforms, thereby strengthening local and territorial cohesion.
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Safeguards will ensure that less developed regions receive at least the same level of cohesion funding as they do today.
2. Expanded Priorities: Competitiveness, Defence, Society and Resilience
European Competitiveness Fund
With an approximate budget of €410 billion, this fund will support strategic technologies in areas such as green transition, digitalisation, health, biotechnology, bioeconomy, defence, and space.
It will be integrated with Horizon Europe, which will continue with a budget of around €175 billion, offering support from the design phase to the scale-up of innovative projects.
Resilience and Crisis Management
A new crisis response mechanism is proposed, with up to €400 billion in loans, to be activated when Member States face exceptional circumstances.
Local partnerships will also include investments in health preparedness, civil protection, and emergency management.
Global Europe (External Action)
The Global Europe heading will receive €200 billion, including a €15 billion reserve for unexpected crises.
In addition, support to Ukraine could reach up to €100 billion, managed as a specific reserve and not counted as traditional Official Development Assistance (ODA).
The proposal integrates and simplifies instruments such as NDICI (Neighbourhood, Development and International Cooperation Instrument), humanitarian aid, and pre-accession support—streamlining objectives but raising concerns over transparency and development effectiveness.
3. Modernised Own Resources: Fiscal Diversification for Strategic Goals
The proposal includes five new own resources to finance the MFF without increasing national contributions:
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Additional revenues from the EU Emissions Trading System (ETS) – approx. €9.6 billion annually
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Revenues from the Carbon Border Adjustment Mechanism (CBAM) – estimated at €1.4 billion
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A levy on uncollected electronic waste – €15 billion
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A new tobacco tax – €11.2 billion
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A corporate contribution (CORE): a lump-sum fee for companies with a minimum turnover – €6.8 billion annually
This model aims to provide more stable, fair, and goal-oriented financing aligned with environmental, social, and strategic objectives.
4. Outstanding Issues and Critical Views
External experts believe that while the priorities are well-placed, the overall budget remains insufficient. The proposed increase—from 1.1% to 1.26% of EU GNI—falls short of addressing the EU’s structural needs.
Organisations such as Eurodad warn that the restructuring of external aid could weaken global solidarity and effectiveness. Concerns include the potential alignment of aid with migration control or preferential support to European companies through direct concessions.
5. What’s Next?
For the MFF to enter into force, unanimous agreement by the Council of the EU and consent from the European Parliament are required. The interinstitutional negotiation process will unfold over the next two years, with an agreement expected by the end of 2027.
The new budget is scheduled to take effect on 1 January 2028.
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