The European Commission has introduced a proposal for a new Multiannual Financial Framework (MFF) for 2028–2034, amounting to nearly EUR 2 trillion. Representing 1.26% of the EU’s gross national income, the MFF is designed to support the EU’s long-term ambitions for prosperity, independence, and resilience in a changing global environment.
In response to mounting challenges—including geopolitical tensions, economic shifts, climate threats, and migration—the Commission proposes a fundamental redesign of the EU budget. This redesign will make the budget more streamlined and impactful, enabling the EU to better respond to both long-standing and emerging priorities.
To support this modern budget, the Commission also recommends introducing new sources of revenue and adjusting existing ones. These “own resources” are expected to generate EUR 58.5 billion annually, easing pressure on national budgets and ensuring sustainable funding.
The proposed MFF features increased flexibility to allow rapid EU responses to unforeseen events and shifting priorities. It includes simplified funding programmes and introduces National and Regional Partnership Plans to ensure investments are tailored to local needs and strengthen economic and social cohesion across the EU.
The long-term budget focuses on investing in Member States and regions. It brings cohesion and agricultural policies under a unified, strategic framework, emphasizing convergence, reducing disparities, and simplifying access to funds for workers, farmers, rural areas, and cities. There are specific safeguards to ensure minimum allocations for less developed regions.
The proposal ringfences income support for farmers and fishermen and simplifies funding rules for agriculture. It also mandates that 14% of national allocations be directed towards employment, poverty reduction, skills enhancement, and social inclusion initiatives.
Compliance with rule of law principles remains a prerequisite for receiving EU funds. The Conditionality Regulation will continue to safeguard the budget, and the Partnership Plans will include further rule-of-law protections. A centralized database will enhance transparency by publishing information on EU fund recipients.
Education and civic participation remain priorities. The long-term budget will fund skills development, culture, media, and democratic engagement. A reinforced Erasmus+ will be central to education mobility, while the AgoraEU programme will support European values and creative industries.
To boost innovation and global competitiveness, a new European Competitiveness Fund of EUR 409 billion is proposed. It will invest in strategic sectors such as clean energy, digital technologies, biotech, and defense. This Fund, alongside Horizon Europe (EUR 175 billion), will support full project lifecycles and accelerate public-private investments.
The MFF also emphasizes crisis preparedness. A new mechanism will provide up to EUR 400 billion in loans for severe crises. The budget includes dedicated funds to support farmers during disruptions and strengthen the Union’s civil protection and health response capabilities.
In the area of defense and security, the MFF allocates EUR 131 billion through the European Competitiveness Fund’s defense and space window. Military mobility will be supported through tenfold increases in the Connecting Europe Facility, improving infrastructure and cybersecurity across the EU.
Migration and border security receive increased funding of EUR 34 billion, tripling the previous budget. This funding will support effective border management, law enforcement, and implementation of the new EU migration framework.
Externally, the EU plans to reinforce its global partnerships. A EUR 200 billion Global Europe instrument will strengthen international action and EU visibility in partner countries. It includes EUR 15 billion in reserves and up to EUR 100 billion in support for Ukraine, addressing both immediate needs and long-term resilience.
The MFF will also continue funding for the Common Foreign and Security Policy, totaling EUR 3.4 billion, to maintain peace, strengthen international security, and support human rights and democratic governance abroad.
To match its expanded ambitions, the EU proposes five new revenue sources. These include revised contributions from the Emissions Trading System (EUR 9.6B/year) and the Carbon Border Adjustment Mechanism (EUR 1.4B/year). Additional resources will come from non-collected e-waste (EUR 15B/year), a tobacco excise duty (EUR 11.2B/year), and a Corporate Resource for Europe (CORE) contribution from large companies (EUR 6.8B/year).
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