The European Commission urged EU member states to agree on new funding options to increase the bloc’s budget from 2028, warning that the “status quo is not an option,” according to Euractiv.
In a document published on Wednesday, the Commission highlighted the need for additional resources to address emerging challenges, including defence, economic competitiveness, and the repayment of Covid-19 recovery debt.
The Commission is set to present proposals for the next Multiannual Financial Framework (MFF) in July, launching negotiations for the 2028-2034 budget. Key priorities include maintaining current spending programmes like the Common Agricultural Policy (CAP) and Cohesion policy, while boosting investment in defence and economic growth.
The EU Commission emphasised the financial strain of repaying the €800 billion NextGenerationEU recovery fund, which will cost €25-30 billion annually—nearly a fifth of the current EU budget.
There cannot be an EU budget fit for our ambitions and notably ensuring the reimbursement of NextGenerationEU, and, at the same time, stable national financial contributions without introducing new own resources.
To address the funding gap, the Commission proposed new revenue streams, including 30% of revenue from the EU’s Emissions Trading System (ETS); revenue from the Carbon Border Adjustment Mechanism (CBAM); and redistributed tax revenue under the OECD’s global tax agreement for multinational corporations.
While the Commission has fulfilled its commitment to propose new funding sources, member states have yet to reach a consensus. The executive described finding an agreement as a “matter of urgency,” with initial discussions scheduled for 17 February in Warsaw.
Public consultation and parliament’s role
The Commission launched public consultations on five specific funding areas and the overall performance of the budget. It also plans to convene a “citizens panel” of 150 Europeans to gather input, according to Commission president Ursula von der Leyen.
We invite all Europeans to have a say.
The European Parliament aims to adopt its position on the next MFF in May. Siegfried Mureșan, one of the Parliament’s chief negotiators, pledged to defend traditional spending programmes while advocating for increased investment in defence and competitiveness.
