EU's Budget Proposal Faces Resistance from Berlin After Call for a Doubling to Two Trillion Euros - EU budget expansion proposed to reach €2 trillion - Berlin voicing opposition
The European Commission has proposed a groundbreaking €2 trillion EU budget for the period 2028-2034, marking the most ambitious financial framework ever presented for the EU [1][2][4]. This budget aims to bolster Europe's economic competitiveness, defense capabilities, and strategic autonomy in key sectors such as biotechnology, clean tech, digital industries, and space.
The proposed budget has, however, met notable resistance from the German government, which has publicly objected to the scale of spending [1]. The objections likely stem from concerns over fiscal responsibility and the potential pressure such a large budget could impose on member states, particularly Germany, which traditionally advocates for more restrained EU spending.
Key Budget Allocations and Impact ------------------------------------
### Competitiveness Fund
The EU has allocated €451 billion for the Competitiveness Fund, which aims to boost EU investment in clean tech, biotech, defense, space, food, and digital innovation, thereby enhancing industrial capacities and strategic autonomy [1][4].
### Defense & Space
The defense and space sector will receive €131 billion, representing a fivefold increase compared to the previous budget. This substantial increase will be used to build a stronger European Defence Union, improve military mobility, cybersecurity, and infrastructure [1][4].
### Military Mobility
Under the Connecting Europe Facility, military mobility will receive a tenfold increase in investment. This funding will support dual-use infrastructure that will help to ensure defense readiness and rapid military deployment across Europe [1][4].
### Agriculture (Farmers)
The new budget secures traditional funding for farmers, although this could potentially mean less money for farmers than before [1].
### Migration & Border Security
Funding for migration management, external borders, and internal security will triple to €34 billion [4].
### Impact on Competitiveness
The increased budget explicitly targets elevating the EU's global competitiveness by scaling up innovation and securing supply chains through the European Competitiveness Fund. This includes significant investments in biotechnology, digital transformation, and clean technologies, designed to help the EU compete more effectively against overseas rivals [1][2][4].
### Impact on Defense
The substantial increase in defense spending addresses rising security challenges, including Russian aggression near EU borders. The budget supports developing a European Defence Union that can act swiftly and remain connected. Investments will also boost military mobility and infrastructure, cybersecurity, and defense industry innovation, aiming to reduce dependency on non-EU military suppliers and enhance strategic autonomy [1][4].
The budget negotiations between the 27 EU member countries and the European Parliament are expected to take place over the next two to three years [3]. The temporary debt-financed economic stimulus program NextGenerationEU, worth up to €800 billion, was introduced to combat the economic impacts of the COVID-19 pandemic [4]. However, the German government has expressed objections to the additional taxation of companies proposed by the EU Commission [5].
References: [1] European Commission (2025). Press Release: Proposal for the EU's Next Multiannual Financial Framework 2028-2034. Retrieved from
- The European Commission's proposed €2 trillion budget for the period 2028-2034, aimed at enhancing Europe's economic competitiveness, defense capabilities, and strategic autonomy, has received resistance from the German government, particularly due to concerns over fiscal responsibility and potential pressure on member states, like Germany, traditionally advocating for more restrained EU spending.
- The European Commission's budget includes a €451 billion allocation for the Competitiveness Fund, which prioritizes investments in key sectors such as biotechnology, clean tech, digital industries, food, and space, with the aim of boosting industrial capacities and strategic autonomy, thereby increasing Europe's global competitiveness.
