The European Commission has proposed a new EU budget for 2028-2034

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On July 16, the European Commission (EC) presented its proposal for an ambitious and dynamic multiannual financial framework for 2028-2034, which will amount to almost €2 trillion (or 1.26% of the bloc’s GDP on average for the period). This is stated in the institution’s announcement.

The key features of the new multiannual financial plan are as follows.

Greater flexibility so that Europe has the ability to act and respond quickly when circumstances change unexpectedly or when new political priorities need to be addressed.
Simpler, more streamlined, and harmonized EU financial programs.
A budget adapted to local needs, with national and regional partnership plans based on investment and reforms.
A powerful boost to Europe’s competitiveness to secure supply chains, expand innovation, and lead the global race for clean and smart technologies.
A balanced package of new own resources that provides sufficient revenue for European priorities while minimizing the pressure on national public finances.

The EU has presented five new own resources. These include, in particular, the EU Emissions Trading System (ETS) – ETS1 is expected to generate an average of around €9.6 billion per year – and the CBAM mechanism (around €1.4 billion per year).

There are also own resources based on uncollected electronic waste, excise duty on tobacco products, and a corporate resource for Europe. The latter (CORE) is an annual one-off contribution from non-SME companies operating and selling products to the bloc, with a net annual turnover of at least €100 million. It is expected to generate an average of around €6.8 billion per year.

To support Ukraine, the EU may mobilize €100 billion for Ukraine during 2028-2034.

“Support for Ukraine will benefit from a degree of flexibility, given the scale and unpredictability of needs. Support for military operations will continue to be covered by the European Peace Fund,” the statement said.

The document will be discussed by the governments of EU member states and the European Parliament over the next two years.

As GMK Center reported earlier, the EU will finance 94 transport projects under the CEF program. In particular, funding has been allocated for the construction of a European gauge railway in Ukraine.