Von der Leyen Addresses Criticism Over EU Trillion-Euro Budget Proposal

The European Commission has put forward a proposal for the next long-term European Union budget totaling approximately two trillion euros. This plan, which outlines the financial framework for the period from 2028 to 2034, has prompted significant debate within EU institutions, particularly concerning the reformation of budget structures and allocation of funds.

EU Commission President Ursula von der Leyen recently responded to concerns raised by members of the European Parliament over potential changes to the way budget funds are distributed. In correspondence with Parliament President Roberta Metsola and representatives of the EU member states, von der Leyen outlined possible amendments intended to address parliamentary apprehensions and facilitate consensus.

One of the core issues involves the redistribution of funding for agricultural initiatives and regional development. Under the new proposal, the Commission suggests creating a single, consolidated fund that would replace the multiple existing funds dedicated to agricultural policy and support for structurally weaker regions. This approach is designed to streamline financial administration and enhance flexibility in allocating resources to where they are most needed.

However, parliamentary representatives have expressed reservations, arguing that merging these funding streams may diminish the significance of individual policy areas. They contend that maintaining separate budgets for each domain would provide greater certainty and stability for recipients, especially those in rural communities and sectors heavily reliant on EU support.

In response to these concerns, the Commission is considering reserving a fixed proportion of the EU budget specifically for rural development, alongside the funds earmarked for common agricultural policy. This adjustment aims to ensure that both agricultural stakeholders and rural regions continue to receive targeted support under the new budget framework.

The draft budget, which represents an increase of roughly 700 billion euros compared to the current seven-year financial plan, requires unanimous approval by the governments of all EU member states as well as consent from the European Parliament. The legislative process for adopting the Multiannual Financial Framework (MFF) is rigorous, with both national governments and the Parliament playing critical roles in shaping the final agreement.

Parliamentarians are also advocating for greater involvement in the approval and modification of national spending plans, as well as a more prominent role in annual budget decision-making. They have emphasized the need for comprehensive participation to ensure that the interests of diverse regions and sectors are adequately represented.

To foster dialogue and resolve outstanding issues, von der Leyen has invited key stakeholders--including Parliament President Metsola and Danish Prime Minister Mette Frederiksen, representing the current EU Council Presidency--to a high-level meeting. The objective is to achieve a balanced compromise that accommodates the priorities of both the Parliament and member states while advancing the EU's long-term financial strategy.

The outcome of these negotiations will have far-reaching implications for the EU's ability to fund major initiatives in agriculture, regional development, and other policy areas over the next decade. As deliberations continue, the focus remains on establishing a budget that is both robust and adaptable to the evolving needs of the European Union and its citizens.