President of the European Commission Ursula von der Leyen talking to media at the end of a bilateral meeting in the Berlaymont, the EU Commission headquarter on July 13, 2025 in Brussels, Belgium.
Thierry Monasse | Getty Images News | Getty Images
The European Union's executive arm on Wednesday put forward a proposal for a 2 trillion euro ($2.31 trillion) seven-year budget for the bloc starting in 2028, with a significant increase in funding allocated for defense.
"This is a budget for the realities of today, as well as the challenges of tomorrow," European Commission President Ursula von der Leyen said during a press conference. Around 35% of the budget will go toward climate and biodiversity projects, she said.
Von der Leyen said the EC was proposing to allocate 131 billion euros for defense and space, a fivefold increase from current spending, as part of its new European Competitiveness Fund — a source aiming to boost investment in the region.
Member state contributions would remain unchanged while the EU looks to five new revenue streams, including rates on non-collected e-waste and new duties on tobacco products, as well as a lump-sum contribution from companies generating an average 6.8 billion euros annually.
The Multiannual Financial Framework (MFF) must still be approved by the European Parliament and EU member states and could undergo changes in that process.
Dutch Finance Minister Eelco Heinen said in a statement that the budget proposal was "too high" and that the EU needed to focus on how existing funds could be spent better.
This is a breaking news story and will be updated shortly.
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