The European Union presents a 2 trillion euro Budget plan for the years 2028-2034

The European Commission has published its final plans for the 2028-2034 budget, known as the Multiannual Financial Framework (MFF). The new MFF, amounting to nearly EUR 2 trillion, includes a fundamental redesign to make it more streamlined, flexible, and impactful.

One of the key features of the new MFF is the introduction of the European Competitiveness Fund (ECF), which will merge activities currently running under 14 different budget lines. The ECF aims to invest EUR 410 billion in strategic technologies, with a focus on clean transition and decarbonization, digital transition, health, biotech, agriculture and bioeconomy, defence, and space.

However, environmental organizations like the Öko-Institut have expressed concerns that the EU's budget realignment, including the introduction of the ECF, might lead to abandoning the EU Life program—which is dedicated exclusively to nature, climate, and environmental protection—in favor of increased funding for more polluting industries.

Despite these concerns, the Commission says the Budget is designed to address challenges in areas such as security, defence, competitiveness, migration, energy, and climate resilience. The new MFF will continue to support an industrial food system, despite being linked to some of the EU's most damaging public subsidies, which degrade ecosystems and accelerate the climate crisis.

Income support to farmers and fishermen, including environmental measures, on-farm investments, support to young farmers, and risk management tools, will be ringfenced. However, agri-environmental and climate measures will become one of many objectives without their own dedicated funding or minimum spending requirements for EU Member States.

To address this issue, the Commission's proposal eliminates the 'second pillar' of the Common Agricultural Policy, which funds environmental measures and rural development programs. Instead, these measures will be integrated into the overall policy objectives of the ECF.

The new MFF also includes flexibility, simpler financial programs, and a budget tailored to local needs. Funding rules for agriculture and rural communities will be simplified, including on payments, controls, and audits.

The defence and space window of the ECF will receive EUR 131 billion, five times more funding than the previous MFF. This significant increase in funding is expected to boost competitiveness in these sectors.

The concern over the new MFF is raised at a time of biodiversity and climate crises when funding and public support for adequate action to fulfil the EU's environmental goals are urgently needed. As the EU moves forward with the implementation of the new MFF, it remains to be seen how it will balance the need for competitiveness with the urgent need for environmental protection.

The European Union presents a 2 trillion euro Budget plan for the years 2028-2034