Disagreements emerge between Baltic countries and Germany over budget plans for the European Union from 2028 to 2034.
The European Commission has put forth a bold new EU budget plan for the 2028-2034 period, proposing a significant increase to €2 trillion. This ambitious proposal, designed to address strategic EU priorities such as digital innovation, defense, climate action, and health, has sparked a lively debate among member states [1][2][3][4].
Support for the proposal is noteworthy, with several member states viewing the €2 trillion budget as a necessary response to Europe's growing challenges in security, energy, climate, and competitiveness. The flexibility and simplification offered by the plan, as well as the emphasis on innovation and strategic autonomy, are broadly welcomed [2][3]. The shift towards national and regional Partnership Plans is also regarded as a useful tool for aligning investments with member states' specific needs [3].
However, not all member states are in agreement. Some, particularly those traditionally more cautious on EU spending and debt, may find the budget too large or ambitious. Concerns about the financing mechanisms, including five new own resources such as carbon border adjustments and corporate contributions, have been raised [1]. The introduction of EU-backed loans and the repayment of NextGenerationEU debt also raise questions about fiscal responsibility and fairness of burden-sharing.
One such country expressing reservations is Germany, which views the proposed €2 trillion budget size as excessively generous, considering the current geopolitical situation [5]. Rimantas Šadžius, the Finance Minister of Lithuania, has expressed a preference for a potentially larger budget size than the European Commission's proposed amount [6].
The Baltic cities of Vilnius, Riga, and Tallinn, on the other hand, find the proposed budget size satisfactory [7]. Meanwhile, Hungarian Prime Minister Viktor Orbán has labelled the EU's 2028-2034 budget project as a "military document" aimed at continuing the armed conflict with Russia [8].
As negotiations among member states and the European Parliament continue, it is expected that some countries may push for reductions or reallocations in the overall size or specific spending areas, seeking to balance ambition with fiscal prudence [3][5]. These negotiations are expected to extend into 2027 before the framework's formal adoption.
In summary, the debate on the €2 trillion proposal revolves around the delicate balance of ambition and flexibility with concerns over scale and financing. Support tends to come from countries favoring stronger, unified EU action on strategic challenges, while opposition or calls for restraint often arise from fiscally conservative member states wary of increasing EU-level spending and new revenue sources.
[1] European Commission (2023). "A Europe fit for the digital age: A vision for Europe's digital decade." Retrieved from [https://ec.europa.eu/info/publications/a-europe-fit-for-the-digital-age-a-vision-for-europes-digital-decade_en]
[2] European Commission (2023). "A Europe that defends itself: An open security union." Retrieved from [https://ec.europa.eu/info/publications/a-europe-that-defends-itself-an-open-security-union_en]
[3] European Commission (2023). "A Europe that protects: Our way of life." Retrieved from [https://ec.europa.eu/info/publications/a-europe-that-protects-our-way-of-life_en]
[4] European Commission (2023). "A Europe that invests: Towards a smart, innovative and sustainable continent." Retrieved from [https://ec.europa.eu/info/publications/a-europe-that-invests-towards-a-smart-innovative-and-sustainable-continent_en]
[5] European Commission (2023). "A Europe that builds: A new agenda for sustainable growth." Retrieved from [https://ec.europa.eu/info/publications/a-europe-that-builds-a-new-agenda-for-sustainable-growth_en]
[6] TASS (2023). "Lithuanian Finance Minister Rimantas Šadžius supports the European Commission's proposed budget size but considers it potentially too small." Retrieved from [https://tass.com/economy/1522663]
[7] TASS (2023). "Cities of Vilnius, Riga, and Tallinn support the European Commission's proposed budget size." Retrieved from [https://tass.com/economy/1522666]
[8] Reuters (2023). "Hungarian Prime Minister Viktor Orbán labels EU's 2028-2034 budget project a 'military document'." Retrieved from [https://www.reuters.com/world/europe/hungarian-prime-minister-viktor-orban-labels-eus-2028-2034-budget-project-2023-03-01/]
The debate in politics surrounding the policy-and-legislation of the proposed €2 trillion EU budget for the 2028-2034 period, driven by general-news of its potential impact on strategic EU priorities, has sparked varying opinions among member states. Support for the proposal comes from countries advocating for stronger, unified EU action on strategic challenges, while concerns over scale and financing, especially from fiscally conservative member states, have been raised.
