The European Parliament has voted to seek a roughly 10% funding increase for the 2028–2034 multiannual financial framework compared to the European Commission’s July 2025 proposal. Lawmakers intend to direct the additional resources toward defense, security, competitiveness, cohesion policy, and agriculture.
Parliament Proposes New Revenue Sources
To relieve pressure on member state contributions, European Parliament members introduced several new budget revenue sources in their spring position. The proposed additions include a digital services fee, an online gambling fee, an expansion of the carbon border adjustment mechanism, and a capital gains fee on crypto-assets.
Council of the European Union presidency holder Cyprus previously proposed a 2% funding reduction relative to the Commission’s baseline. Ireland, assuming the rotating presidency early this month, is expected to table its own negotiating position soon.
Co-Rapporteurs Warn of National Costs
Budget co-rapporteurs Siegfried Muresan (EPP) and Carla Tavares (S&D) have argued that a reduced European Union budget would force individual member states to tackle more challenges independently at the national level, likely resulting in higher overall costs.
Muresan and Tavares also emphasized that a larger bloc budget does not automatically translate to higher national contributions. They explained that once inflation and economic growth are factored in, the budget will maintain or even decrease real member state contributions, particularly if agreement is reached on the new own resources requested by the Parliament.
European Parliament Must Consent to Financial Framework
Adopting the multiannual financial framework requires the absolute majority consent of European Parliament deputies. Negotiations among EU institutions will continue as the Irish presidency prepares its formal proposal to guide ongoing discussions.
Multiannual Financial Framework Details
What is the proposed budget increase for 2028–2034?
The European Parliament voted in the spring to seek an increase of approximately 10% compared to the European Commission’s July 2025 proposal.
Which new revenue sources have lawmakers suggested?
Proposals include a digital services fee, an online gambling fee, an expanded carbon border adjustment mechanism, and a crypto-asset capital gains fee.
What voting threshold is needed to pass the budget?
Final adoption of the multiannual financial framework requires the consent of the European Parliament by an absolute majority of its deputies.
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