The European Commission is developing a draft for the largest budget in the history of the European Union for the years 2028-2034. The total financial plan could reach €1.717 trillion, significantly exceeding the budget of the previous period. According to the announced plans, €100 billion is intended to support Ukraine through a separate off-budget fund.
This is reported by Finway
Main Directions of the New EU Budget
It is reported that the final budget amount may still change before its approval; however, if agreed upon, the budget share will be 1.23% of the total national income of member countries, which is higher than the current figure of 1.1% (2021–2027).
Priority areas for funding will include defense, innovation, and security. At the same time, spending on traditional items, such as agricultural policy and regional development, will be reduced.
“According to European Commission President Ursula von der Leyen, €100 billion is planned to support Ukraine.”
Budget Distribution Structure
- €946 billion will be directed to support the so-called “European social model.”
- €522 billion is allocated for enhancing competitiveness, improving welfare, and ensuring security.
- €190 billion will be directed towards foreign policy objectives and assistance to EU neighboring countries.
- €107 billion is planned for the administrative needs of the European Union.
To finance new expenditures and gradually pay off the joint debt incurred during the COVID-19 pandemic, the European Commission is considering the introduction of three new taxes. In this way, the EU aims to make the budget more sustainable and effectively support both its own priorities and partner states, including Ukraine.