EU Budget War 2028-2034 Explained: Farmers, War & 800 Billion Euros Debt

Asianet News English

The European Union is bracing for a stormy battle over its next long-term budget for 2028-2034. With war raging in Ukraine, angry farmers ready to protest, and 800 billion euros in COVID-era debt coming due, EU leaders are split over how to spend—and where to save. This in-depth breakdown covers all sides of the brewing crisis, from the defence funding dilemma to controversial cuts in farming subsidies.

Transcript

00:00When the European Union unveils its long-term budget proposals next week,

00:07it won't just be a numbers game.

00:10It will ignite one of the most explosive budget battles in EU history.

00:15From supporting struggling farmers to defending its borders

00:19and repaying pandemic-era debt,

00:22the EU must now choose where to tighten the belt and where to throw its weight.

00:28European Commission President Ursula von der Leyen is preparing to unveil

00:33the EU's new budget blueprint for 2028 to 2034.

00:39The last budget, 2021 to 2027, was already a massive one – that is 1.2 trillion euros.

00:49Funded by national contributions and EU-generated revenues like custom duties,

00:54it equaled roughly 1% of the bloc's gross national income.

00:59But this time, the stakes are even higher.

01:03The European Parliament has already signalled one thing.

01:06It wants more money.

01:08More for security.

01:10More for competitiveness.

01:12And more to prepare the EU for future economic shocks.

01:16But how do you increase spending while trying to cut ballooning deficits?

01:22Security will be front and centre.

01:25With the war in Ukraine dragging on and NATO pushing members

01:29to spend up to 5% of their national output on defence,

01:33the EU is under pressure to act,

01:36even though it legally can't fund military operations directly.

01:41That's where dual-use infrastructure comes in.

01:45Think roads, bridges and logistic networks.

01:49Civilian projects that can serve military purposes in wartime.

01:53A 100 billion euro fund to support Ukraine is also on the table.

01:59Though EU officials say the final number could still change

02:03before the proposals are announced on Wednesday.

02:06Von De Leon says the EU will support Ukraine until 2028 and beyond.

02:12A bold promise.

02:14But one that comes with a hefty price tag.

02:20But security isn't the only pressure point.

02:23Farmers across Europe are sharpening their pitchforks literally.

02:27The Common Agricultural Policy or CAP takes up the biggest share of the EU's budget.

02:34Roughly 387 billion euros.

02:38With 270 billion euros going directly into farmers' pockets.

02:43But now that very system could face its biggest shake-up yet.

02:48The EU is considering putting a cap on how much a single farm can receive.

02:53And even shifting funds away from large land owners to smaller, greener farms.

03:00Experts predict CAP's share of the budget will shrink further.

03:06But farmers are drawing red lines.

03:09COPPA, the powerful EU farming lobby, say they are ready for a fight.

03:15Farmers plan to protest outside the Commission building this Wednesday,

03:19raising fears of a repeat of last year's massive demonstrations.

03:23There's another major question.

03:27Should the agriculture budget remain separate?

03:30Or be merged into broader cohesion funds,

03:34allowing member states to decide how to spend it?

03:38France, the biggest beneficiary of CAP, says absolutely not.

03:43They want to preserve their dedicated farming budget and they are not alone.

03:52Shifting power away from Brussels back to national capitals could appease some.

03:56But it could also spell chaos for long-standing EU unity on food security and rural development.

04:04Now, the elephant in the room, debt.

04:09The EU borrowed a staggering 800 billion euros during the COVID-19 pandemic to save its economy.

04:17And now, starting in 2028, the bill comes due.

04:22Annual repayments could go up to 30 billion euros.

04:27So, how will the EU pay for all this?

04:31France and Italy are pushing for more joint borrowing.

04:35But that's a red flag for Germany and the so-called frugal states,

04:40Finland, Sweden and the Netherlands.

04:43One proposal, an emergency mechanism allowing the EU to raise grants or loans during crisis.

04:50But diplomats say it keeps getting added and deleted from drafts.

04:55Other ideas include taxing digital services or even small packages entering the EU from outside.

05:02But none of these are guaranteed to plug the hole.

05:06From furious farmers to ambitious defence goals.

05:10From looming debt repayments to bitter fights over who foots the bill.

05:15The EU's 2028-2034 budget isn't just a spreadsheet.

05:21It's a ticking time bomb for Europe's political unity.

05:26Will Brussels find a compromise?

05:29Or will national interests tear the block apart at the seams?

05:33One thing is certain, Europe's future is on the negotiation table.

05:39Public temptations to be involved.

05:41Will Brussels throw theк volta to the house on the table.

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