EU Commission Proposes Increase of €65.8bn in Long-Term Budget

The EU Commission has proposed an increase of €65.8bn in a review of the EU\’s long-term budget to address the drain on existing funds caused by several crises and increasing inflation. EU Commission President Ursula von der Leyen has described the proposals as an “absolute must”.

Consolidating the Budget

The EU budget commissioner Johannes Hahn has said that the proposed increase is necessary to consolidate the budget, with member states needing to agree on the proposed numbers among themselves and with the European Parliament by 4 December at the latest to adopt next year\’s budget accordingly.

Proposed Allocations

The proposed funds include grants of €17bn to support Ukraine, €15bn for migration and neighbourhood policy, and €10bn for defence research and innovation. There is also €1.9bn for higher administration costs and €3bn for unforeseen expenditures until 2027.

Member State Response

Germany and the Netherlands have expressed support for extra funding for Kyiv but have also reminded the Commission that national budgets are under pressure. Germany’s finance minister Christian Lindner has warned that EU countries are facing “very difficult budget negotiations” at home.

Criticism from MEPs

Key MEPs have welcomed the call for additional funds, but criticised the commission for not allocating more money to back green technologies. Green MEP Henrike Hahn pointed out that the commission did not deliver on a promised sovereignty fund, which was supposed to finance joint EU projects to keep the bloc ahead of global competition in clean technologies.