The European Commission has unveiled a bold proposal for the EU’s next Multiannual Financial Framework (MFF), covering 2028 to 2034, with a budget nearing EUR 2 trillion—equivalent to 1.26% of the EU’s gross national income. This revamped financial plan is designed to equip Europe to meet major geopolitical, economic, and environmental challenges, while promoting long-term prosperity, security, and global competitiveness. Key priorities include defence, energy, climate resilience, migration, innovation, and social inclusion, all anchored in a more streamlined, flexible, and impactful EU budget.
The proposal introduces National and Regional Partnership Plans that will align EU funding with tailored national reforms and investments, integrating support for farmers, workers, cities, and rural areas. These plans aim to reduce regional disparities, promote social inclusion, and ensure respect for EU values such as the rule of law. Major investments will go toward skills, education (including a reinforced Erasmus+ programme), and civic engagement through initiatives like AgoraEU. Simultaneously, the new European Competitiveness Fund will channel EUR 409 billion into key technologies—from clean energy and digital innovation to defence and health—alongside a reinforced Horizon Europe programme.
To fund these ambitions, the Commission proposes five new own resources, including revenues from emissions trading, carbon border taxes, and a corporate contribution from large firms, aiming to generate EUR 58.5 billion annually. This modernised revenue stream will reduce pressure on national budgets while financing key EU priorities and repaying debts under the NextGenerationEU plan.
Read the full press release on the European Commission’s website.
