The European Commission is on the verge of finalizing a proposal for a central EU budget worth 1.717 trillion euros for the seven-year period beginning in 2028, according to sources cited by POLITICO. However, disagreements over the final figure persisted late into Tuesday evening.

If endorsed, this proposal would mark an increase in the EU’s spending power compared to the current Multiannual Financial Framework (MFF) that runs from 2021 to 2027. Under the leadership of Commission President Ursula von der Leyen, the budget would represent about 1.23% of the EU’s gross national income—up from the current 1.1%.

The proposed total, expressed in 2025 prices, compares to the existing 1.2 trillion euros framework in current prices. Negotiations continued into Tuesday night, with figures still subject to change before von der Leyen presents the budget on Wednesday.

However, resistance is growing, with countries like Germany opposing an expanded EU budget amid rising populist and anti-EU sentiment.

A Shift in Spending Priorities

The EU’s long-term budget, the Multiannual Financial Framework, supports areas from agriculture to foreign aid. With slow growth and rising spending demands, von der Leyen has warned of cuts across all sectors, aiming to redirect funds from traditional areas to priorities like defense and innovation.
Budget Breakdown: Where the Money Will Go

According to figures seen by POLITICO, the proposed allocation includes:

• 946B euros for social programs like regional policy and agriculture—less than before.
• 522B euros for competitiveness and security, highlighting future investments.
• 190B euros for foreign aid under “Global Europe.”
• 107B euros for EU administration.
• Plus, 88B euros planned separately for Ukraine over seven years.

New Taxes to Cover Post-Covid Debt

To help repay the common EU debt accumulated during the Covid-19 pandemic, the Commission will also propose three new revenue streams: taxes on electronic waste, tobacco products, and large corporations operating in the EU with annual revenues above 50 million euros.
Debt repayments are expected to cost between 25 and 30 billion euros annually, starting in 2028.