EU officials anticipate an especially difficult process as member states face growing challenges, including heightened security needs, climate goals and shifting global trade dynamics.
Disagreements over national contributions are expected to dominate discussions, with wealthier Western European countries reluctant to increase their financial commitments.
The EU’s budget, known formally as the Multiannual Financial Framework, sets spending priorities over seven years. The current budget, covering 2021–2027, totals EUR 1.8 trillion, with EUR 800 billion allocated to the COVID-19 Recovery Fund.
Crafting this budget required months of negotiations at EU summits and technical meetings, as all 27 member states must reach unanimous agreement—a process often fraught with prolonged disputes.
Push for increased security, defense spending
The Russian invasion of Ukraine has spotlighted the EU’s defense vulnerabilities, prompting calls for increased funding in the new budget to bolster the bloc’s security.
European Parliament budget committee member Andrzej Halicki, a Polish MEP, has advocated for integrating defense spending into cohesion policies, which traditionally aim to reduce economic disparities between member states.
Halicki emphasized the need for financial mechanisms that support border protection and the European defense industry.
The EU remains committed to the European Green Deal, its flagship initiative to achieve climate neutrality. However, poorer member states argue that they cannot shoulder the financial burden alone, urging for additional support to mitigate the costs of emissions trading and other green policies.
While some voices call for revising the Green Deal, Brussels is determined to maintain its trajectory.
The anticipated return of American economic protectionism under incoming President Donald Trump poses another potential hurdle.
Trump’s proposed tariffs on EU imports could harm European economies, potentially reducing member states’ willingness to contribute more to the EU budget.
Deepening political crises in Germany and France, the EU’s two largest economies, have raised concerns about a leadership vacuum in Brussels.
This uncertainty may complicate negotiations, particularly as Austria, Denmark, the Netherlands, and Sweden—dubbed the "frugal group"—remain steadfast in opposing higher budget contributions.
Halicki stressed the importance of preserving cohesion funding, which helps poorer regions within the EU, while also increasing allocations for research, innovation, and artificial intelligence to address global economic shifts.
Andrzej Halicki. Photo: Polish Radio/PR3
The EU’s long-term budget aims to provide stability and predictability for shared policies, including agriculture, infrastructure and development aid.
However, with growing demands and entrenched national interests, reaching a consensus on the next budget will likely test the limits of European unity.
(rt/gs)
Source: PAP