New EU budget: 2 trillion euros for security and growth!

New EU budget: 2 trillion euros for security and growth!

EU Commission President Ursula von der Leyen today presented a comprehensive proposal to increase the European Union's long-term budget. The new budget for the years 2028 to 2034 is expected to amount to around 2 trillion euros, which is around 700 billion euros above the current budget. This represents a significant step to strengthen investment in security and defense, particularly in the context of geopolitical tensions, such as the current situation with Russia. Von der Leyen described this budget as a “budget for a new era” that should meet Europe’s ambitions.[SRF]

Increasing the budget has not only financial but also power-political dimensions. An increase could strengthen the position of the EU Commission in the political landscape of the Union. The budget is largely financed from contributions from the member states, with Germany, as the most economically powerful state, accounting for around a quarter of the EU budget. In the future, the Commission plans to budget less money directly in order to be able to respond more flexibly to the challenges of a rapidly evolving global environment.[BR]

New sources of revenue and national plans

To finance the budget increase, Von der Leyen proposes various new sources of income. These include, among others:

• Eine Abgabe für große Unternehmen mit einem Jahresumsatz von über 50 Millionen Euro.
• Eine Abgabe auf nicht für das Recycling gesammelten Elektroschrott.
• Ein Teil der Einnahmen aus nationalen Tabaksteuern, die nach Brüssel fließen sollen.

The Commission also requires each EU state to draw up a National Reform and Investment Plan (NRP) to set out how EU funds will be used. This is intended to ensure that the funds are used in a targeted and effective manner.[SRF]

Lengthy negotiations and effects on Switzerland

The negotiations on the new financial framework are expected to be lengthy and complicated. The budget increase proposal must be discussed and approved by both EU countries and the European Parliament. While Parliament must make a majority decision, the member states must adopt the budget unanimously. These extensive negotiations also have implications for Switzerland, particularly in relation to additional funding for research and education programs and the new tax on large companies.[BR]

Another financial aspect is the repayment of the Corona development fund, which begins in 2028 and should last until 2058. These repayments could require 25 to 30 billion euros annually, which could put additional financial pressure on EU member states.[SRF]