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EU Parliament demands higher budget for defense, Ukraine
๐Ÿ‡ฆ๐Ÿ‡น Austria /Economy & Trade

EU Parliament demands higher budget for defense, Ukraine

From Die Presse · (11m ago) German Mixed tone

Translated from German, summarized and contextualized by DistantNews.

TLDR

  • The European Parliament is demanding a 10% increase in the EU budget for 2028-2034 compared to the European Commission's proposal.
  • Lawmakers want more funds allocated to defense, competitiveness, and aid for Ukraine, while maintaining current levels for agriculture and cohesion policy.
  • To finance the higher budget and repay COVID-19 fund debts, the parliament suggests new EU-wide revenue streams totaling 60 billion euros annually.

Strasbourg โ€“ In a move that is sure to spark debate among member states, the European Parliament has voted to demand a significantly higher EU budget for the next long-term financial framework (2028-2034). Lawmakers are calling for an increase of approximately 10% over the European Commission's proposal, signaling a clear ambition to bolster the bloc's spending power in key areas.

The parliament's priorities are clear: increased investment in defense capabilities, enhanced economic competitiveness, and continued robust support for Ukraine. Simultaneously, MEPs voted to maintain substantial funding for the Common Agricultural Policy and cohesion funds, reflecting a desire to balance new priorities with established commitments. This stance, however, is likely to face resistance from some national governments, particularly those advocating for fiscal austerity and a reduction in their contributions to the EU budget.

Der Steuerzahler ist immer ein und derselbe

โ€” Reinhold Lopatkaร–VP-Delegationsleiter Reinhold Lopatka explaining Austria's abstention on the EU budget vote, emphasizing national fiscal constraints.

To bridge the funding gap and manage the repayment of debts incurred from the NextGenerationEU recovery fund, the parliament has proposed introducing new, Europe-wide revenue sources. These could include levies on digital services, an expansion of the Carbon Border Adjustment Mechanism (CBAM), or taxes on online gambling and crypto-asset gains. Such proposals, if adopted, would represent a significant shift in how the EU finances its operations, moving beyond traditional contributions from member states.

From an Austrian perspective, this push for a higher EU budget is a contentious issue. While some MEPs, like the Social Democrats, argue that the requested increase is justified given the current global geopolitical landscape, others, including the ร–VP delegation, emphasize the need for national budgetary discipline. Reinhold Lopatka of the ร–VP rightly pointed out that "the taxpayer is always the same," highlighting the pressure on national budgets. This divergence underscores the ongoing tension between the aspirations of the European Parliament and the fiscal realities faced by individual member states, particularly those, like Austria, that are already implementing austerity measures.

Zehn Prozent mehr sind auf keinen Fall รผberzogen angesichts der Weltlage

โ€” Andreas SchiederSPร–-Delegationsleiter Andreas Schieder arguing in favor of the budget increase due to the global situation.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.