Almost 2 trillion. The European Commission’s budget for the new programming period 2028-2034, according to European Commission Chairman Ursula von der Laen, is on Wednesday, presenting the plan of the Commission to address a challenge series, extending from increasing global competition to increased defensive needs, as stated.

The President of the Commission described the Commission’s proposal for the new programming period “budget for a new era”, adding that it is marking a change as the EU will use new sources of revenue for its funding while the contributions of the Member States will be maintained at current levels.

Ursula von der Layen added that the budget plan provides for five times the defense costs, which shows that security is the top priority for citizens and bloc governments, as well as the triplasticism of European funding and European migrants.

At the same time, he stressed that the budget plan for the first time enables the Member States of the Union to invest in the EU targets of up to 150 billion euros, while stressing that there is a special emphasis on respecting the rule of law.

The president of the Commission also noted that 35% of the new budget is planned to be available for climate and biodiversity, adding that it includes 100 billion euros for Ukraine.

The budget plan was agreed after intense negotiations that lasted until late Tuesday night and continued on Wednesday morning, according to people who know the matter and spoke to Bloomberg on condition of anonymity.

The amount of 2 trillion. EUR provided by the budget plan for the period 2028-2034 marks a significant leap from 1.2 trillion. euro-equivalent to 1.26% of EU gross production on average in the period 2028-2034-included in the EU budget during the latest budgetary cycle, 2021-2027.

The impressive amount of the new budget is likely to spark reactions from some EU Member States that are already facing fiscal issues that will be responsible for funding most of the package through national contributions.

In more detail in the EU’s budget plan for the period 2028-2034, the Commissioner for Budget Piotr Serafin, who noted that the Commission’s proposal places particular emphasis on the competitiveness and defense of the bloc, while aiming to reform the rules on subsidies for agriculture.

Serafin added that the budget plan includes a € 589.6 billion competitiveness, prosperity fund, of which EUR 451 billion is intended for the EU Competitiveness Fund.

Much of the European budget will once again receive agriculture, which has long been one of the cornerstone of the Community budget, as funding has been provided for a total of € 300 billion for joint agricultural policy.

Also, € 218 billion is intended to support the less developed areas of the block, while € 131 billion will be allocated for defense and period five times as compared to the current amount.

The presentation of the European Commission’s proposal for the budget of the next programming periods begins a painful process in which the European Parliament and the European Council, representing the Member States, will intervene in the process.

Then, EU leaders must give their unanimous approval. The budget, known as a multiannual fiscal framework, must be agreed by the end of 2027.

EU Commissioner Michael McGrath told Bloomberg radio on Wednesday morning that the budget is being “under difficult conditions”, as it is required to launch EU debt repayment in 2028 to tackle the pandemic of coronavirvasse, which could reach 25 billion euros.

“It is two years of harsh negotiations ahead of us,” McGrath noted, adding, however, that “today is an important day.”

The debate on this year’s budget plan, which will governing block priorities in the period 2028-2034, will be even more sensitive, as the EU seeks to strengthen its defensive capabilities and improve its competitiveness as it faces financial threats from the US.

Former European Central Bank President Mario Draghi also warned last year that the EU is facing an investment gap of € 800 billion a year.

The current long -term budget supports about 50 EU funds, from research to energy projects. It is mainly funded by the contributions of the Member States, with the richest economies being purely contributing to the common fund.