European Commission Proposes Overhaul of 2028 EU Budget

The European Commission is proposing significant reforms to the next EU budget, set to begin in 2028, to enhance competitiveness and foreign policy influence, while addressing rising global challenges. The current budget structure allocates two-thirds of funds to agriculture and regional development, which the Commission argues needs to change in light of increasing security threats from Russia and economic competition from the US and China. The proposal emphasizes the need for a more flexible and strategic financial plan that can adapt to urgent needs, including debt repayments from pandemic recovery efforts. The Commission aims to engage EU member states in discussions about these necessary changes, as the traditional budget framework has been criticized for its rigidity and long-term commitments. By expanding the budget, the EU hopes to ensure prosperity, security, and cohesion among member states. Overall, the changes aim to align the budget more closely with the evolving priorities and challenges facing the EU.