“It’s more strategic, more flexible and more transparent,” von der Leyen said in the announcement.
“We are investing more in our ability to react and more in our independence.”
The draft structures the budget along three main areas:
- EUR200 billion ($233 billion) for external action, including EUR100 billion ($116 billion) for Ukraine;
- EUR865 billion ($1 trillion) for agriculture, fisheries, economic cohesion, and social policies;
- EUR410 billion ($477 billion) for research and innovation.
While direct contributions from EU member states will cover the bulk of the budget, the proposal also includes new EU-wide taxes on electronic waste, tobacco, and profits made by major corporations.
All financial disbursements to member states will be tied to their adherence to the rule of law—a measure von der Leyen described as “a key response to democratic backsliding in Hungary.”
“We will ensure that funds are spent responsibly, with full accountability through reliable guarantees, clear conditions, and appropriate incentives,” she added.
“This is in the interest of our citizens.”