On 28 April, the European Parliament formally adopted its stance on the European Union's next long-term budget, the Multiannual Financial Framework (MFF) for 2028–2034. With 370 votes in favour, 201 against, and 84 abstentions, MEPs are demanding a 10 percent increase over the European Commission's initial proposal of nearly €2 trillion, tabled in July 2025. The Parliament's research service, in an April 2026 report, outlines a budget that would total roughly €2.2 trillion in current prices.
The Parliament's position calls for funds to be split evenly among three priority areas: cohesion and agriculture, competitiveness, and external action. Notably, MEPs insist that repayments for the NextGenerationEU recovery fund—amounting to €149.3 billion in 2025 prices—be kept outside the spending ceilings, a move that would free up additional fiscal space for other programmes.
Key Spending Priorities
Under the Parliament's proposal, the Common Agricultural Policy (CAP) would receive €385.12 billion as a separate funding stream, while cohesion policy would get €274.34 billion. MEPs stress that regional and local authorities must retain a central role in managing these funds, a point that could spark debate with national governments seeking more centralised control.
For competitiveness, the Parliament adds €62.08 billion to the Commission's proposed €522.2 billion, including €26.6 billion specifically for a new European Competitiveness Fund. Other programmes such as Horizon Europe and the Connecting Europe Facility would see reinforced funding, while the EU4Health and LIFE programmes would benefit from ringfenced allocations.
On external action, MEPs want an extra €21.24 billion beyond the Commission's €190 billion proposal, with a stronger emphasis on enlargement, aid for Ukraine, multilateral cooperation, and humanitarian support. This reflects the bloc's strategic priorities amid ongoing geopolitical tensions, including the war in Ukraine and broader challenges to the rules-based international order.
Revenue and Negotiations
The Parliament supports the Commission's plan for a diversified “basket” of revenue sources, but goes further by calling for additional streams, such as a digital services levy. This aligns with broader EU efforts to modernise its financing mechanisms, though it faces opposition from some member states and industry groups. The digital euro project has similarly encountered banking resistance and parliamentary hurdles, illustrating the contentious nature of new fiscal instruments.
Negotiations on the MFF cannot formally begin until all parties have adopted their positions. The Parliament is scheduled to vote on the budget during its next plenary session on 18 May, while discussions in the Council of the EU are set for the 18–19 June summit. This timeline sets up a potential clash with member states, many of which are already wary of increasing the EU budget. The European Parliament's demand for a €200 billion boost has already drawn criticism from net contributor countries like Germany, the Netherlands, and Sweden, who argue that the bloc should focus on efficiency rather than expansion.
The Parliament's position also comes amid broader debates about the EU's role in global affairs. Parliament Vice-President Wilmès has argued that the EU must engage the US as an equal partner, not a junior ally, a sentiment that underscores the need for a robust external action budget. Meanwhile, the European Parliament's defence of its role after Azerbaijan suspended cooperation highlights the institution's growing assertiveness in foreign policy.
As the budget process unfolds, the outcome will shape the EU's priorities for the next seven years, from supporting Ukraine and managing enlargement to boosting competitiveness and addressing climate goals. The Parliament's ambitious proposal sets the stage for tough negotiations with member states, who will ultimately have the final say.
