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European Commission proposes 2-trln-euro long-term budget

Xinhua | Updated: 2025-07-17 08:52
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European Commission President Ursula von der Leyen speaks during a press conference on a proposal for the EU's next seven-year budget, in Brussels, Belgium July 16, 2025. [Photo/Agencies]

BRUSSELS - The European Commission on Wednesday proposed a two-trillion-euro (2.33 trillion US dollars) budget for 2028-2034 for the European Union (EU).

The budget proposal would raise EU spending to an average of 1.26 percent of the bloc's gross national income, up from around 1.1 percent during the current 2021-2027 cycle.

European Commission President Ursula von der Leyen described the budget as "larger, smarter and sharper", saying it reflects Europe's ambition, addresses its challenges and strengthens its independence.

The plan includes a new 409-billion-euro European Competitiveness Fund intended to reinforce the EU's defence sector, accelerate industrial innovation and support the transition to clean energy across member states.

Within the fund, 131 billion euros would be allocated to defense and space, five times more than in the current multiannual financial framework, according to the Commission.

While most funding will still come from EU member states, the Commission is proposing new revenue streams, including a tax on companies with annual net turnover above 100 million euros in any EU country.

Approval of the budget requires unanimous agreement from all 27 EU member states and the endorsement of the European Parliament.

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