European Commission proposes 2-trillion-euro long-term budget

Brussels, July 17 (IANS) The European Commission has proposed a two-trillion-euro (2.33 trillion US dollars) budget for 2028-2034 for the European Union (EU).

The budget proposal would raise EU spending to an average of 1.26 per cent of the bloc's gross national income, up from around 1.1 per cent during the current 2021-2027 cycle, reports Xinhua news agency.

European Commission President Ursula von der Leyen described the budget as "larger, smarter and sharper," saying it reflects Europe's ambition, addresses its challenges and strengthens its independence.

"Our budget will help build a Union that protects. We are proposing €131 billion for Defence and Space, under the Competitiveness Fund. 5 times of what we have today. This will strengthen our industrial base and our capabilities," Ursula von der Leyen posted on X following the budget announcement on Wednesday.

The plan includes a new 409-billion-euro European Competitiveness Fund intended to reinforce the EU's defence sector, accelerate industrial innovation and support the transition to clean energy across member states.

Within the fund, 131 billion euros would be allocated to defence and space, five times more than in the current multiannual financial framework, according to the Commission.

While most funding will still come from EU member states, the Commission is proposing new revenue streams, including a tax on companies with annual net turnover above 100 million euros in any EU country.

Approval of the budget requires unanimous agreement from all 27 EU member states and the endorsement of the European Parliament. (1 euro = 1.16 US dollar)

Additionally, in a separate development, the European Commission on Wednesday proposed a revision of the EU Climate Law, setting a target to reduce net greenhouse gas emissions by 90 per cent by 2040 compared to 1990 levels. It has also proposed new flexibility mechanisms to ease pressure on European industries.

--IANS

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