Budget height of about 2 trillion. Euro proposed by the European Union (EU) For the next seven years, as it seeks to face a series of challenges, from increasing global competition to increased defense demands.
The EU budget plan, which will be implemented by 2028, was agreed after intense negotiations that continued until late Tuesday night (15.07.2025) and resumed on Wednesday morning (16.07.2025), according to Bloomberg sources.
The amount of 1.98 trillion. euro represents a significant increase compared to 1.2 trillion. euro corresponding to 1% of EU GDP, which were allocated to the budget in the latest budget cycle, between 2021 and 2027. The huge amount of the budget is likely to meet resistance from certain EU Member States that are already facing fiscal problems and which will be responsible for funding.
The plan includes a € 589.6 billion competitiveness, prosperity fund, of which € 450.5 billion is set for an EU competitiveness fund, according to the same sources.
Georgia, which has long been one of the cornerstone of the EU budget, will again receive much of the funding, with 293.7 billion euros to be proposed for the Union’s common agricultural policy.
Wednesday’s proposal marks the launch of a painful procedure in which the European Parliament and the European Council, which represent the Member States, will participate. EU leaders must give their unanimous support. The budget, known as a multiannual fiscal framework, must be agreed by the end of 2027.
EU Commissioner Michael McGrath told Bloomberg Radio on Wednesday morning that the budget is being drawn up “under difficult circumstances”, including the requirement to start repaying EU debt to Covid pandemic in 2028, which could reach 25 billion euros euros.
“We are waiting for two years of hard negotiations,” he said. “However, today is an important day.”
EU budget discussions have long been controversial, as the EU faces competitive demands from the agriculture sector to regional funding for the poorest Member States.
This year’s proposal, which will set the priorities of Union spending between 2028 and 2034, is even more sensitive, given the EU’s goal to enhance its defense capabilities and improve its competitiveness as it faces economic threats from the US and increasing competition from China. In a report by former European Central Bank President Mario Draghi last year warned that the EU is facing an investment gap of € 800 billion a year.
The current long -term budget supports about 50 EU funds, from research to energy projects. It is mainly funded by Member States’ contributions, with the richest economies being purely contributing to the public.