EU Parliament pushes €2 trillion budget

The European Parliament voted Tuesday to push the European Union’s next seven-year budget above €2 trillion, opening a fight with member states over how much Brussels should spend. (europarl.europa.eu) (politico.eu) The vote sets Parliament’s negotiating position for the 2028-2034 Multiannual Financial Framework, the European Union’s long-term budget. Members approved the report 370-201, with 84 abstentions. (europarl.europa.eu) Parliament said the budget should equal 1.27% of European Union gross national income, while keeping repayment costs for the NextGenerationEU recovery debt outside the main spending ceilings. That structure lifts Parliament’s headline total to €2.01 trillion in current prices, versus the Commission’s almost €2 trillion proposal. (europarl.europa.eu) (commission.europa.eu) The extra money is meant to cover newer priorities such as defence, industrial competitiveness, innovation and border security without cutting older ones such as farm subsidies and regional aid. Parliament also said inflation should not erode the real value of the budget over seven years. (europarl.europa.eu) (politico.eu) A big part of the dispute is accounting. The Commission’s July 16, 2025 draft set the framework at about 1.26% of gross national income, almost €2 trillion, and folded recovery-debt servicing into the overall package. (commission.europa.eu) (politico.eu) Parliament wants those debt repayments treated separately, arguing that paying back post-pandemic borrowing should not squeeze current programs. Its press office said the increase over the Commission proposal is about 10%, or €197.3 billion in current prices. (europarl.europa.eu) Lawmakers also want new European Union revenue streams adopted with the budget, with a target of about €60 billion a year. Politico reported that Parliament is pressing for levies that would fall in part on large technology companies. (europarl.europa.eu) (politico.eu) Governments hold the stronger hand in the next phase, and Germany has already signaled resistance. When the Commission unveiled its draft in July 2025, Berlin said a substantial increase in the European Union budget was unacceptable while member states were consolidating national finances. (commission.europa.eu) (brusselstimes.com) That leaves the Parliament with leverage but not the last word. The budget regulation needs Parliament’s consent, and Parliament President Roberta Metsola said lawmakers would not simply “rubber-stamp” whatever national capitals agree. (europarl.europa.eu) (politico.eu)