EU’s €1.98 trillion budget proposal faces fierce criticism from political groups

On 16 July the European Commission unveiled its most ambitious long-term budget proposal to date, the post-2027 Multiannual Financial Framework (MFF), totalling €1.98 trillion (1.26% of the EU’s gross national income), a significant increase from the current MFF’s 1.05% of GNI.

European Commission President Ursula von der Leyen touted the budget as “strategic, flexible, and transparent,” merging the Common Agricultural Policy (CAP) and Cohesion Policy into 27 country-specific “national and regional partnership plans” worth €865 billion, while introducing a €451 billion Competitiveness Fund (ECF) to bolster EU industry and a €200 billion Global Europe Fund for foreign policy and enlargement.

However, with €165 billion allocated to repay the pandemic recovery fund, the effective budget is €1.82 trillion (1.15% GNI).

The proposal, which includes a 30% cut to CAP and a perceived dilution of Cohesion Policy, has sparked intense criticism from the European Parliament’s political groups, who decry its centralizing tendencies, undermining of regional priorities, and prioritization of defence over social needs, exposing deep fault lines in the EU’s vision for its future.

The European People’s Party (EPP), the Parliament’s largest group, expressed deep disappointment, with Vice-President Siegfried Mureșan declaring the proposal ignores key parliamentary red lines. He criticized the national plans as “rebranded” national wish lists that erode the EU’s shared vision, warning, “No partnership, no budget.”

Mureșan rejected the CAP and cohesion cuts, calling them non-negotiable pillars, with CAP’s reduction threatening 7 million farmers and cohesion’s dilution risking regions like Romania, where 34% of the population faces social exclusion. The EPP insists on a transparent, efficient budget that respects Parliament’s legislative role, with Mureșan noting that 70% of MEPs in a 2024 survey demanded stronger regional funding.

The Socialists and Democrats (S&D), led by Iratxe García Pérez, refused to support the budget proposal, arguing it fails to address Europe’s pressing social challenges. García Pérez condemned the national plans as a “setback” toward renationalization, threatening the EU’s ability to deliver on common goals. She criticized the CAP and cohesion merger as a “major blow” to the EU’s identity, especially amid rising disparities and food security concerns, with 22% of EU citizens at risk of poverty in 2024.

While acknowledging positive elements like housing investments and fair taxation proposals, she rejected austerity-linked funding conditions, citing the devastating impact of post-2008 austerity, which slashed GDP growth by 1.5% annually in southern member states. The S&D demands a budget that prioritizes citizens over centralization.

The European Conservatives and Reformists (ECR) voiced reservations about the budget’s centralizing shift, with Bogdan Rzońca warning that consolidating funds into national plans sacrifices transparency and stability.

Roberts Zīle criticized the “cash-for-reform” model as prioritizing Commission geopolitical goals over member state autonomy, noting that 60% of EU regions fear reduced cohesion funding.

The ECR opposed new own resources, like levies on businesses and consumer goods, projecting a €15 billion annual burden on SMEs, and demanded clarity on defence funding, given the EU’s €50 billion defence spending gap.

Both MEPs stressed maintaining CAP and cohesion’s distinct roles to support rural communities and the internal market.T

The Left group decried the budget’s neglect of working people, with Leïla Chaibi warning that renationalization empowers governments to prioritize defence over social needs, with military mobility funding rising tenfold to €10 billion while the European Social Fund (ESF+) is slashed by 20% to €90 billion.

Estrella Galán called the ESF+ cut “self-destructive” amid a 15% rise in wealth inequality since 2020, demanding a doubling of its €112 billion 2021-2027 allocation. The Left also lamented the absence of a €20 billion European Child Guarantee, noting 24.7% of EU children face poverty risk.

The group vowed to oppose a budget that sidelines social justice for militarization.

The European Committee of the Regions (CoR) and its President Kata Tüttő lambasted the MFF as a “complicated and divisive” plan that risks sidelining regions and cities.

Tüttő criticized the “monster national plans” for merging CAP, cohesion, and migration funds, arguing they disconnect funding from regional needs, undermine multilevel governance, and prioritize Commission control over local cooperation.

“This interrupts the EU’s direct relation with regions, turning a blind eye to their challenges,” she said, urging the Parliament and member states to overhaul the proposal to restore cohesion’s role.

CoR rapporteur Sari Rautio (EPP, Finland) echoed this, calling the shift to national plans a betrayal of the EU’s people-centric vision, risking ineffective investments akin to the Recovery and Resilience Facility’s failures. She rejected the €127 billion (30%) cut to CAP (€293 billion) and the €453 billion for cohesion—nominally €28 billion higher but diluted by competing demands—as robbing “Peter (cohesion and agriculture) to pay Paul (new priorities).”

The adoption of the European Union’s Multiannual Financial Framework (MFF) for 2028–2034 is a complex process involving multiple stages of proposals, negotiations, and approvals, with a target for final adoption by the end of 2027 to take effect on 1 January 2028.

With reactions from political groups and CoR, edited by g.g.

Caption: President of the European Commission, Ursula von der Leyen, presents the proposal for the Multiannual Financial Framework (MFF) at the EU Commission in Brussels, Belgium, 16 July 2025. The European Commission presented its proposal for the MFF, amounting to almost two trillion euros, or 1.26 percent of the EU’s gross national income on average between 2028 and 2034. EPA/OLIVIER MATTHYS