On 16 July 2025, the European Commission presented its proposal for a new long-term budget for the European Union – an ambitious and dynamic Multiannual Financial Framework (MFF) for 2028–2034, totalling almost EUR 2 trillion, or around 1.26% of the EU’s gross national income. This budget is designed to equip Europe with the resources needed to remain an independent, prosperous, secure and thriving Union over the coming decade.

The proposed MFF introduces greater flexibility across the budget to allow the EU to respond swiftly to crises and evolving policy priorities. It simplifies and harmonises funding programmes, ensuring citizens, businesses and regions can more easily access opportunities. A key innovation is the introduction of National and Regional Partnership Plans, aligning investments and reforms to local needs, strengthening economic, social and territorial cohesion, and ensuring that less developed regions continue to receive robust support.

The proposal also brings forward a powerful competitiveness agenda, including the creation of a European Competitiveness Fund to drive strategic investments in clean and digital transitions, health, biotechnology, defence and space. Complementing this, the Horizon Europe programme, worth EUR 175 billion, will continue to support world-class research and innovation across the EU.

The MFF reinforces Europe’s resilience through new crisis response mechanisms and enhanced preparedness, including a reserve of up to EUR 400 billion in loans for Member States facing severe shocks. It also strengthens the EU’s capacity to protect and defend, allocating EUR 131 billion to defence, security and space, a fivefold increase compared to the previous budget.

Externally, a Global Europe Instrument of EUR 200 billion will support strategic partnerships, enlargement, and diplomacy, alongside continued strong support for Ukraine. To match its ambitions, the Commission proposes five new own resources, diversifying EU revenue through instruments such as the Emissions Trading System, the Carbon Border Adjustment Mechanism, and a new Corporate Resource for Europe.

The proposal draws on extensive stakeholder engagement, including the European Citizens’ Panel on a new European budget fit for our ambitions, whose 23 recommendations helped shape the final framework. The next steps involve negotiations in the Council and consent by the European Parliament, paving the way for a stronger, more united Europe ready to face the challenges of the next decade.