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EU budget 2028–2034 explained

Summary

  • The European Commission has proposed the EU’s next long-term budget for 2028–2034, also known as the Multiannual Financial Framework (MFF)
  • Worth €2 trillion over seven years, it aims to strengthen Europe’s sovereignty, boost competitiveness, and build resilience
  • The new EU budget will be more streamlined, modernising EU investments and aligning national and EU priorities more strategically

How big is the EU's next budget?

€2 trillion
total budget for 7 years
1.26%
of the EU’s gross national income

How will the money be spent?

  • €865 billion – almost half the budget – to help close the gap between Europe’s regions
  • €409 billion to make Europe more competitive in the global economy
  • €49 billion to invest in education (Erasmus+) and promote democratic values (AgoraEU)
  • €200 billion to build stronger partnerships with the rest of the world

What are the main priorities of the new EU budget proposal?

The proposal identifies six strategic priorities that define the next EU long-term budget.

How will the EU budget affect people and EU countries?

  • Citizens
    • Funding for education and opportunities for young people to study and work abroad (e.g. Erasmus+ is growing by 50%)
    • Stronger support for civil society, media freedom, environment, and democratic values through the new AgoraEU programme
    • Better preparation and quicker action during natural disasters or emergencies
    • Easier access to affordable housing, included in national and regional plans
  • EU Member States
    • Simpler access to EU funding through streamlined, tailor-made plans
    • More controls for local areas on how to use funds, while still meeting EU priorities
    • New opportunities to borrow money through Catalyst Europe with favourable conditions for strategic investments
    • More strategic tools for energy independence, technological innovation, and defence capability

What is new?

The 2028–2034 budget marks a clear evolution from past budgets:

Europe’s biggest budget

At €2 trillion, the EU’s next budget is the largest in history.

Streamlined for results

Fewer programmes, simpler plans, and the flexibility to act quickly in times of crisis.

Funds linked to rule of law

EU funding will only be granted when rule of law principles are respected.

EU-backed loans

For the first time, the EU will offer EU-backed loans (Catalyst Europe) to spur investment in strategic areas.

How will the EU fund this budget?

To fund this ambitious programme without asking countries to contribute more, the European Commission has proposed five new sources of EU income, which are called ‘own resources:

  • EU Emissions Trading System
  • Carbon border adjustment mechanisms
  • Non-collected e-waste
  • Tobacco excise duty
  • Contributions from large corporations operating in the single market

They are expected to generate €58.5 billion per year. They will help the EU fund new long-term priorities (digital, defence, and clean technologies) and also repay debt from the COVID recovery programme (NextGenerationEU)

What are the EU's own resources?

Own resources are the EU’s main ways of raising money, such as customs duties or a share of VAT, that go straight to the EU budget to fund its priorities.

What happens next?

The proposal now enters the negotiation phase with the European Parliament and Member States. Once approved, the next EU budget will not only finance Europe’s goals but reshape how the Union delivers value across borders and generations.

  1. July 2025
    Commission proposes new EU budget
  2. 2025-2027
    Budget is negotiated by the Parliament and EU Member States
  3. 2028
    The new budget enters into force

The EU budget explained