The European Union is planning to adopt a record budget of €1.98 trillion for the period from 2028 to 2034, which will be the largest financial package in the history of the bloc.
Bloomberg reports this with reference to EU sources.
The draft budget was agreed after intensive negotiations that lasted until late Tuesday evening and resumed on Wednesday morning.
“There are two years of difficult negotiations ahead,” said European Commissioner Michael McGrath, stressing the need to service the debt associated with the COVID-19 pandemic, which could require up to €25 billion annually from 2028.
The document envisages the creation of a competitiveness, prosperity and security fund totalling €589.6 billion, of which €450.5 billion is earmarked to stimulate the EU’s economic strength. It is also proposed to allocate 293.7 billion euros for the common agricultural policy.
This budget is significantly higher than the €1.2 trillion allocated for the current 2021-2027 period. The proposal is expected to spark debate, as the budget requires the unanimous support of all member states.
The proposed financial plan is especially important against the backdrop of intensifying geopolitical competition from the United States and China, as well as the growing need to strengthen Europe’s defence capabilities.
