EU Commission unveils €2 Trillion budget plan

BRUSSELS — The European Commission on July 16 a €1.76 trillion budget for 2028–2034, overhauling the EU’s long-term spending strategy. 

The plan introduces a streamlined spending structure built around three core policy pillars — plus a fourth for administration. A key novelty to this approach is  the “Single Plan”,  giving Member States more say over cohesion and agriculture funds. The proposal also includes earmark funding for a Ukraine Reserve and introduces a new crisis loan facility. To fund it, the Commission proposed five new revenue sources, including levies on tobacco, e-waste, and large corporations, which are expected to raise €58.5 billion annually.

Presented as more flexible and future-ready, the proposal was met with swift criticism from national governments and MEPs, setting the stage for a contentious political debate. 

A second legislative package covering technical and legal details is expected on 3 September. Final adoption is due by mid-2027.

Our Take

This is the Commission’s bid to future-proof the EU budget  — streamlined, crisis-aware, and aligned with the industrial visions laid out by Draghi and Letta.

But in trying to strike a balance in diverging interests, the plan risks pleasing none. The most debated issue being the pooling of funds into national “Single Plans”, which critics say risks diluting shared goals and weakening European integration.

The hurdles are steep: unanimous backing in the Council and approval from the Parliament remain high bars for the budget to pass. The Commission sees this as a budget for future crises, but first, it must  survive the present political storm gathering.

First Reactions

The backlash began even before the proposal was made public — with Italy, Portugal, Sweden, and Greece voicing early concern. Germany followed, rejecting the scale and new revenue streams, arguing that budget hikes clash with national fiscal tightening.

Parlementarians, for their part, fear a weakening of EU-level programs and diminishing Parliament’s oversight role. e. Critics warn the merging of cohesion and CAP funds undermines solidarity and fragments the budget, risking a return to 27 national agendas. Even supporters of the plan say it falls short of the climate and digital ambitions it aims to support. 

As talks begin, a key question looms: will this budget strengthen EU autonomy, or chips away at the unity it’s meant to secure?