EU Proposes Ambitious 2028-2034 Budget for Defence and Climate

The European Commission has proposed the Multiannual Financial Framework (MFF) for 2028-2034, aiming to significantly increase the EU budget to EUR 2,000 billion to address climate protection, defence, and economic challenges.

• Key proposals include: new own resources from ecological levies (ETS and CBAM), corporate taxation (BEFIT and OECD Pillar One), EUR 865 billion for national and regional partnership plans, EUR 300 billion for modernized Common Agricultural Policy, and a EUR 410 billion European Competitiveness Fund covering innovation, climate, health, and defence.
• Defence financing plans: EUR 7.3 billion for the European Defence Fund (2021-2027), EUR 131 billion from the Competitiveness Fund for defence and space, EUR 100 billion for Ukraine recovery, and a EUR 150 billion capital market bond borrowing under the “ReArm Europe” initiative, alongside plans for a rearmament bank supported by EU and foreign partners.