Brussels: European Commission President Ursula von der Leyen announced on Wednesday that the Commission has adopted a proposal for the EU's 2028-2034 long-term budget worth EUR two trillion (approx. USD 2.3 trillion), describing it as "a budget for a new era." "This is a larger, smarter and sharper budget," von der Leyen said at a press conference. "It delivers for our citizens, our businesses, our partners, and our future." She noted that this is the most ambitious budget ever proposed, offering greater flexibility, strategic focus, and transparency. According to Kuwait News Agency, despite expanded financing tools, Member States' contributions will remain stable, as the proposal introduces new EU revenue sources. The plan is built on five pillars, starting with National and Regional Partnership Plans worth EUR 865 billion to support investment and reform, with agriculture and cohesion at the core. More than EUR 300 billion is secured for farmers and fishers, EUR 218 billion for less developed regions, and EUR 2 billion for the fisheries sector. The proposal also increases social spending to 14%, triples investments in border management and migration, and expands the Solidarity Fund for disaster response. A new instrument, Catalyst Europe, will allow Member States to access up to EUR 150 billion in loans for joint EU objectives, such as defense and energy infrastructure. Von der Leyen emphasized a simplified allocation system and made clear that access to EU funds will require strict adherence to the rule of law and fundamental rights. The second pillar focuses on competitiveness, with an EUR-410-billion Competitiveness Fund, supporting strategic technologies, science, innovation, digitalization, and decarbonization. Defense and space will receive EUR 131 billion (five times current levels) while funding for transport, energy infrastructure, and cybersecurity will significantly increase. Under the fourth pillar, EUR 200 billion is allocated to Global Europe, a 75%-increase to support global partnerships an d enlargement. EUR 100 billion is specifically earmarked for Ukraine, with a doubled Ukraine Facility to support recovery and EU accession. Finally, EUR 400 billion for crisis mechanism will be created to ensure rapid EU response to future shocks. "This is a budget built for the realities of today and the challenges of tomorrow," von der Leyen concluded.
