European Commission proposes to increase EU budget to 2 trillion euros

On Wednesday, the European Commission proposed an EU budget of 2 trillion euros ($2.31 trillion) for 2028–2034. The new draft is focused on boosting economic competitiveness and defense. The document also suggests a revision of traditional spending on agriculture and regional development.

The commission said the proposed budget amounts to 1.26% of the gross national income of the European Union's 27 countries, which is a measure of the economy's size. The current seven-year budget accounts for 1.13%.

To generate the needed revenue, the Commission has presented several ways. Among them is the introduction of a new tax for companies operating in Europe whose annual net turnover in an EU country exceeds 100 million euros.

As Reuters notes, the proposal marks the beginning of years of negotiations before a final budget is agreed by all member states and signed by the European Parliament.

The project also includes the creation of a multi-billion euro European Competitiveness Fund aimed at boosting the defense industry, encouraging innovation, and supporting industry's transition to clean technologies.