BRUSSELS: The European Commission on Wednesday (Jul 16) unveiled a blueprint for its most ambitious long-term budget yet, a €2 trillion (US$2.3 trillion) package for 2028 to 2034 aimed at strengthening Europe’s security, competitiveness and climate transition while supporting Ukraine.
Commission President Ursula von der Leyen said the new framework would be “more strategic, more flexible, more transparent” as the bloc faces rising trade tensions with the United States, geopolitical threats from Russia and internal pressure over farming and debt.
MASSIVE BOOST FOR DEFENCE, UKRAINE AND INDUSTRY
A €451-billion competitiveness fund was proposed to drive investment in clean tech, digitalisation, defence, food security and innovation. Defence and space spending would jump fivefold to €131 billion, reflecting Europe’s ramp-up in military readiness.
The plan also earmarks up to €100 billion to help rebuild Ukraine. “This is a long-term commitment to Ukraine’s recovery and reconstruction,” EU budget chief Piotr Serafin said.
But Hungary, Russia’s closest ally in the bloc, slammed the allocation. “Ukraine would get a massive funding boost, while European farmers lose out,” said Hungarian Prime Minister Viktor Orban.
FARMERS FEAR CUTS DESPITE €300B PROMISE
The budget proposes €300 billion to support farmers under the common agricultural policy (CAP), sparking concerns of a drop from the current allocation of €387 billion. Of that amount, €270 billion is directly paid to farmers.
Serafin defended the plan, saying farming remained a priority. But that did not appease protesters. Hundreds of farmers gathered outside EU headquarters in Brussels during the announcement, waving banners and demanding fairer treatment.
“This proposal is a provocation,” said Arnaud Rousseau, head of France’s main farmers’ union, FNSEA. “If (our) message is not heard, we will return.”
