The European Parliament has this week adopted a resolution outlining the priorities for the EU’s long-term budget for 2028–2034. MEPs agree that the current spending ceiling of 1% of the EU-27’s Gross National Income (GNI) is no longer sufficient to address the growing number of challenges facing Europe. These include the war in Ukraine, worsening economic and social conditions, and the escalating climate and biodiversity crisis. Lawmakers also pointed to global instability, including the United States’ retreat from its traditional global leadership role.
“The budget proposal for the next seven years, which we voted on May 7 in Parliament, differs slightly from the one we started with in January, as we are still working with all the committees and rapporteurs from pro-European political groups. The negotiation process is typically lengthy. The principles remain the same: we want a majority in the Budget Committee and the majority we have today in the plenary,” said Carla Tavares, Portuguese MEP and rapporteur of the Parliament’s Budget Committee, in an interview with Newseria.
The resolution passed with 317 votes in favor, 206 against, and 123 abstentions. MEPs clearly stated that the EU budget must be increased. The 1% GNI contribution from each EU member state is no longer enough to meet Europe’s growing needs. Budget planning must now account for Russia’s war on Ukraine, economic and social hardships, the competitiveness gap, and the intensifying environmental crises.
MEPs rejected the European Commission’s idea of replacing specific funds with single national plans. This approach, used in the Recovery and Resilience Facility (RRF), involves disbursing funds based on national recovery plans. Instead, MEPs proposed a structure that ensures transparency and parliamentary accountability, involving regional and local authorities as well as all relevant stakeholders.
They also voiced strong opposition to so-called “mega funds” that would consolidate existing programs—such as the proposed “competitiveness fund.” Instead, MEPs called for a new investment fund aimed at mobilizing both public and private investment, backed by EU-level risk-reduction mechanisms.
Another key point was defense spending. While MEPs support increasing the EU’s defense budget, they emphasized that this must not come at the expense of social, environmental, or long-term policy spending.
“There is a defense component in the budget, which is currently very important for the European Union. When we began our work on the Multiannual Financial Framework (MFF) in October last year, the realities were very different. We need to address defense, invest in it, as well as in security and preparedness. But we believe this cannot come at the cost of cohesion. We need both defense and cohesion funding, so we must discuss real, new sources of funding,” said Tavares.
The resolution also stresses that repaying debt from previous borrowing programs—such as the NextGenerationEU fund—must not hinder the financing of core EU programs. MEPs urged the Council to adopt new, sustainable revenue streams. These could include joint borrowing mechanisms to respond to EU-wide crises, particularly in defense and security.
“We must be able to respond to defense funding needs and seek solidarity among all 27 member states in this area. At the same time, we need to preserve cohesion funds. Today, our task is to fight for that within the European Commission. We hope cohesion policy will not suffer—Poland, Portugal, and all 27 member states need it. But of course, we also need defense funding. These two elements must be balanced. It’s not a new issue, but it has become more urgent,” Tavares added.
Lawmakers also called for reforms in the next long-term budget cycles to reduce unnecessary bureaucracy for beneficiaries. Financial plans should be made more transparent and flexible. One proposal includes embedding crisis response capabilities into every EU policy area, such as setting aside funds for humanitarian aid.
The priorities adopted by the European Parliament are expected to be reflected in the European Commission’s formal proposal for the next MFF, which is scheduled to be published in July 2025.
