European Commission proposes €2T budget for 2028-34 term

By Mucahithan Avcioglu

ISTANBUL (AA) - The European Commission unveiled a proposal Wednesday for a €2 trillion ($2.32 trillion) budget for the 2028-2034 term, with a focus on defense, strategic technology and increased competitiveness while maintaining core funding for agriculture and regional cohesion.

"A budget that matches Europe's ambition. That confronts Europe's challenges. That strengthens our independence. A budget that is larger, smarter and sharper. This is a budget that delivers for our citizens, our business, our partners and our future," European Commission President Ursula von der Leyen said during a press conference in Brussels.

Von der Leyen said the proposal earmarks €865 billion for agriculture, cohesion and social policy, including more than €300 billion in income support for farmers and fishers. She added that at least €218 billion would be directed toward investment in less developed regions, while €2 billion would be ringfenced for fisheries.

She said investment in migration and border management would be tripled compared to previous budgets.

Von der Leyen also announced a new instrument, “Catalyst Europe,” which will allow member states to take out up to €150 billion in EU-backed loans for spending aligned with bloc-wide priorities.

“These loans will come with favorable conditions and will be used for strategic sectors including defense, energy infrastructure and advanced technologies,” she said.

To support the EU’s industrial base and global competitiveness, she said the Commission is proposing a European Competitiveness Fund worth nearly €410 billion. Of that, €131 billion would be allocated to the defense and space industries.

The proposed budget also includes €100 billion in support for Ukraine, with von der Leyen reiterating the EU’s commitment to continued financial assistance.