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EU Budget Crossroads: Cohesion vs. Defense Funding
The European Commission prepares to unveil its proposal for the 2028-2034 Multiannual Financial Framework (MFF) amid heated debates between member states and EU institutions. The MFF, the EU's seven-year budget framework currently allocating over €1 trillion, faces pressure to accommodate competing priorities including defense, climate action, and regional cohesion funds.
Controversial Reform Proposals
The Commission suggests mirroring the pandemic recovery model, where member states would create national spending plans combining cohesion and agricultural policies - representing two-thirds of EU expenditure. This would grant national governments direct control over cohesion funds, bypassing regional authorities. Critics argue this could exacerbate regional inequalities within countries.
Divided Positions Among Members
Fourteen member states including Bulgaria, Croatia, Slovenia, and Czechia oppose the Commission's approach. Bulgarian authorities emphasize that "cohesion funding must remain a separate mechanism supporting less-developed regions." Meanwhile, Sweden advocates reallocating cohesion funds: "Some regions receiving large cohesion funds aren't as poor as 15 years ago."
Parliament Demands Budget Expansion
The European Parliament passed a May resolution demanding increased funding, stating: "Defense spending cannot come at the expense of economic, social and territorial cohesion." Renew group supports budget expansion through higher member state contributions. The Socialists secured inclusion of the European Social Fund+ after Dutch MEP Mohammed Chahim warned its removal would create "a Europe without a soul."
Green Funding Concerns
Environmental advocates fear reduced climate funding as defense becomes a priority. The current MFF mandates 30% of spending toward climate action - a target now under pressure.
As negotiations begin, the EU faces fundamental choices between fiscal restraint and ambitious investment, with the Commission's proposal setting the stage for intense political bargaining.
