Brussels, July 14, 2025 (Lusa) - On Wednesday, the European Commission will propose a European Union (EU) budget for 2028-2035 adapted to the new priorities of defence and economic growth, with Portugal calling for the safeguarding of former cohesion and agricultural policies.
On Wednesday, the President of the European Commission, Ursula von der Leyen, will present to the press in Brussels the first package of proposals on the next Multiannual Financial Framework (MFF) 2028-2035 and, as the institution already argued in a communication released in February, "the new challenges and expectations for EU action require a rethink of how the EU budget works in order to adapt it to the future".
"The goal of a free, democratic, strong, secure, prosperous and competitive Europe requires a reformed and strengthened EU budget - simpler, more flexible, more focused and with greater impact," the institution said in its position at the time.
Specifically, the European Commission wants "a modern EU budget with a plan for each country with key reforms and investments, designed and implemented in partnership with national, regional and local authorities", including a European Competitiveness Fund, renewed funding for external action, safeguards on the rule of law and modernised revenues to support common priorities.
The proposal comes at a time of geopolitical tensions such as the war in Ukraine caused by the Russian invasion and strong trade pressures with the EU's main economic partner, the United States, a context that has already led the EU bloc to want to strengthen its defence and diversify its partnerships.
In a position statement accessed by Lusa, the Portuguese government stresses that "the next Multiannual Financial Framework must be sufficiently ambitious, ensuring the stability of current policies and a response to new challenges".
"The increase in new areas of expenditure in the coming years cannot be made at the expense of existing policies and the fundamental principles of the Union," the Portuguese government stresses in the document dated early July, in an allusion to cohesion policy funds and the common agricultural policy (CAP), which in its view "must remain autonomous".
For the country, "it is essential to adopt a comprehensive approach, taking into account all elements of expenditure and revenue", with the government proposing an increase in national contributions (beyond 1% of gross national income), mechanisms based on joint debt issuance and the reduction of administrative burdens.
"Cohesion is not an alternative to competitiveness and economic growth," argues Portugal.
The country also considers the CAP to be an "essential instrument".
In terms of economic competitiveness, it is estimated that the EU will have to invest €800 billion per year, equivalent to 4% of Gross Domestic Product (GDP), to address investment gaps and industrial, technological and defence delays relative to its main competitors, the United States and China.
As for defence, in 2024, EU member states spent around €326 billion on defence, corresponding to approximately 1.9% of the EU's GDP.
This spending is estimated to increase by more than €100 billion in real terms by 2027, implying total spending of around €426 billion by that year.
The European Commission estimates that the EU will need to invest €500 billion over the next decade to support Ukraine in the face of Russia and to strengthen its military capabilities after decades of underinvestment.
Following the presentation of the proposal, negotiations will begin with the co-legislators - MEPs (Parliament) and Member States (Council) - with the aim of concluding the negotiation process in 2026.
The current long-term EU budget provides for €1.21 trillion in commitments (at 2018 prices).
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