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Von der Leyen unveils €2 trillion EU budget plan for 2028-2034

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European Commission President Ursula von der Leyen has presented a record-breaking long-term budget plan, announcing that the 2028-2034 budget will be €2 trillion.

As announced by von der Leyen in Brussels yesterday, the EU budget for 2028-2034 (the Multiannual Financial Framework) will reach approximately €2 trillion. This figure represents 1.26% of the EU’s gross domestic product (GDP), significantly more than the 1.1% of GDP allocated by Brussels for 2021-2027.

“This budget is more strategic, more flexible, and more transparent. We are investing more in our capacity to react and in our independence,” the European Commission President stated on Wednesday afternoon.

Von der Leyen’s plan reshapes the budget’s structure around three main pillars: €865 billion for agriculture, fisheries, cohesion, and social policy; €410 billion for competitiveness, including research and innovation; and €200 billion for external actions, of which €100 billion is allocated to Ukraine.

Although direct contributions from member states will cover most of the budget, von der Leyen also envisions introducing new EU-wide taxes on electronic waste, tobacco, and the revenues of large corporations so that Brussels can generate additional income on its own.

The main plan is to consolidate the EU’s central spending into three main budget lines. This will allow the Commission to respond more quickly to crises and conflicts, but also to control member states more than before under headings such as the “rule of law.”

The Commission also plans to establish a “Global Europe Fund” for an ambitious global policy.

The plans to radically change the structure of the EU budget are explained by the European Commission’s desire to act more “flexibly and effectively” in the future, while also allocating more funds for foreign policy activities and the improvement of member states’ defense capabilities.

Agriculture and cohesion funds are being merged

According to the Commission’s statement, approximately 90% of expenditures are typically fixed in the multiannual financial framework. The multiannual financial framework determines the EU’s seven-year spending; this long period was chosen to avoid having to enter into lengthy budget negotiations every year.

According to Brussels, this framework should be designed in the future so that the Commission can draw on more comprehensive resources in the event of a crisis or war, and for this purpose, the current budget structure will need to be changed.

This structure allocated about one-third of spending to farmers and another third to regions. The official purpose of the share allocated to regions was to bring the standard of living in the EU’s poor regions up to the level of more prosperous regions. There were also numerous small EU programs for different purposes.

Now, the Common Agricultural Policy (CAP), which covers subsidies to farmers, and the cohesion funds are being merged and will cease to be separate entities, both being grouped under the first pillar, National and Regional Partnerships, worth a total of €865 billion.

The two budget items appear to be significantly downsized compared to the current budget, where CAP and cohesion funds account for more than 60% of allocations.

A new approach is now planned. According to this approach, funds for farmers and regions will be combined in a previously non-existent budget item called “European social model and quality of life.”

Tensions will rise between the ‘poor’ south and the ‘rich’ north

On Wednesday, various figures regarding the exact volume of this budget circulated after clearly contradictory information was leaked from the Commission meeting, which lasted much longer than planned, into the afternoon.

According to the latest information, €865 billion—almost half of the total budget that Ursula von der Leyen wants to increase to €2 trillion—has been allocated to this budget item.

Unlike in the past, this money will be transferred directly to the member states, which will sign “national and regional partnership agreements” with the Commission. In these agreements, member states will set targets for their spending and commit to making “reforms.”

The deep cut will be the scene of a fierce debate between the southern countries, which are anxiously watching for any reaction from the agricultural sector, and the eastern countries, which are dependent on cohesion policy to close the gap with wealthier member states.

At the same time, this reduction will be welcomed by the western and northern countries, which have consistently argued for a greater focus on today’s priorities, such as climate action, defense, security, research, innovation, and advanced technologies.

According to the announcement, these reforms may particularly relate to the protection of the “rule of law.” Under this rhetoric, the EU has been “disciplining” governments with which it has fallen into contradiction for years, such as Viktor Orbán’s in Hungary.

Brussels’ control is increasing

In addition to the massive fund for farmers and regions, the European Commission is planning a new budget item: the European Competitiveness Fund (ECF).

This fund will bring together more than a dozen previously independent programs. The Commission officially states that it wants to reduce “complexity” and “bureaucracy.”

At least initially, the supervision of the ECF was planned to be delegated to the Commission. This would have given the Commission more flexibility to use the funds at its discretion and to distribute them more effectively, for example, in the event of new crises and conflicts.

On Wednesday, a figure of €410 billion was circulating, slightly less than initially planned. However, the ECF has faced serious criticism, especially from the European Parliament (EP), from those who feel deprived of their say and thus their authority, as with the agricultural and regional budgets.

The ‘Global Europe Fund’ will tie non-EU countries to the EU

In addition to these two budget items, the European Commission’s budget plan includes a third item, currently called the “Global Europe Fund.”

This fund was created to bring together programs affecting countries outside the EU. This will allow the Commission to use funds for the EU’s global influence policy in a more targeted way than before.

The programs of the Global Europe Fund will be strictly separated by region, and according to preliminary statements, this will make it much easier to “use development cooperation as a tool of EU foreign policy.”

The size of the Global Europe Fund was announced yesterday as approximately €200 billion. In addition to the official budget, a Ukraine fund is also planned, which von der Leyen wants to equip with about €100 billion.

Tax protests from the German business community

The restructuring of EU spending is accompanied by a restructuring of revenues. This figure is also higher than before, as debt repayments of between €25 billion and €30 billion will be made each year from 2028.

Von der Leyen has already shelved the plan to use revenue from a possible new digital tax on US digital giants to consider the fundamental interests of the Trump administration. Instead, she wants to tax unused electronic waste and take a share of national tobacco taxes.

In addition, a tax is planned for EU-based companies with an annual revenue of over €100 million. This is already causing strong protests from the German business community, particularly because a large proportion of the affected companies (up to 40% according to some estimates) are based in Germany.

Observers predict that the draft budget will cause serious disagreements in the EU for at least two years and will further exacerbate existing differences.

Europe

Macron rejects interior minister’s resignation over violent unrest

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French Interior Minister Laurent Nuñez tendered his resignation amid some of the country’s most violent street unrest in recent years. President Emmanuel Macron rejected the resignation.

According to a statement from the Elysée Palace, Macron made the decision because law enforcement required uninterrupted command under current conditions. Macron instructed Nuñez to roll out new methods on the ground as quickly as possible.

The president also demanded that all necessary measures be taken to ensure transparency regarding the lapses in intelligence and foresight that led to the violence.

How many people were on the streets during Saturday’s protests?

The demonstrations were organised on 17 October over the rising cost of living and discontent with the government’s social policies. According to the Interior Ministry, approximately 550,000 people took part, while trade unions put the figure at 800,000.

Hundreds of thousands marched peacefully on Saturday. However, clashes with law enforcement broke out in Paris, Lyon, Marseille, and other cities, where shops were looted and buildings set on fire.

In Marseille, protesters stormed the city hall. As they forced their way in, they shouted, “This is a revolution, we are taking the Bastille!”, and went on to loot numerous stores.

In Lyon, the office of a tourism company housed in a 19th-century building was vandalised and torched. In Limoges, a 19th-century city hall was set ablaze.

Damage incurred by French businesses is reportedly estimated in the hundreds of millions of euros.

Citing Nuñez reported approximately 1,800 detentions and more than 500 injuries among police officers, gendarmes, and firefighters. Reuters reported that Nuñez stated 2,400 people had been detained nationwide and around 1,000 security personnel injured.

During the demonstrations in Paris, one person suffered a fatal heart attack while being detained.

Macron: We feel anger and shame

In a televised address, Macron said that nothing could justify the events. “There is nothing that can justify, explain, or excuse this. Tonight, we all feel anger and shame,” he said.

In the same speech, he stressed that peaceful demonstrators had legitimate grievances and should not be equated with those resorting to violence. He also noted that the protesters’ voices must be heard and that the government had already begun efforts to address them.

Macron said that legitimate demands must not be conflated with violence, and that violence should not prevent those demands from being heard.

Right demands state of emergency, Macron holds off

Right-wing politicians demanded the declaration of a state of emergency.

Macron declined to do so, stating that the government could allow local authorities to ban protests if necessary to protect public buildings and businesses.

Marine Le Pen, who is expected to run as the candidate for the far-right National Rally in next year’s presidential election, called for restraint. Le Pen said the situation in the country must not be treated as normal.

Meanwhile, Jean-Luc Mélenchon, leader of the far-left France Unbowed, stated that Macron must meet the demands of high school students staging demonstrations.

Macron’s term in office ends in 2027.

Throughout his nearly decade-long presidency, the country has frequently witnessed widespread protests, alongside persistent criticism over economic weakness and mounting public debt.

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EU Arctic strategy targets Russia and China while sparing US

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The European Union will launch a surveillance programme in the Arctic in 2027. The programme forms part of the bloc’s new strategy for the region.

The strategy document was obtained by Bloomberg and will be published this week.

A pilot initiative will extend the EU’s Copernicus and Galileo satellite systems to the Arctic. The systems will be deployed to detect land and maritime threats in the region.

“Arctic Cable Hub” to protect undersea cables

The EU will also establish an “Arctic Cable Hub”. The hub’s mission is to safeguard undersea cables carrying critical digital services. In other regions, such cables have become targets of sabotage attempts linked to Moscow.

The updated strategy reflects the EU’s new security-first stance. This transformation began when Russia launched its military intervention in Ukraine in 2022 and gathered pace with Donald Trump’s return to the US presidency in 2025. By contrast, the previous strategy, drafted in 2021, focused on cooperation, climate action, and indigenous peoples.

The Arctic has become an arena for global influence

Climate change has opened new maritime shipping lanes. The region is drawing the attention of Russia, the US, and China.

The document warns: “Increased Arctic shipping in an inherently harsh and poorly charted environment significantly raises the risks of fatal accidents, severe marine pollution, and hybrid interference.”

Russia and China: Military presence and partnership expanding

The document notes that Russia is “steadily rebuilding” its military presence in the region and using the area to transport fuel subject to sanctions.

It offers a similar assessment of China, noting that Beijing’s ambitions in the European Arctic are growing and its partnership with Russia is deepening.

Trump’s Greenland push shook the alliance

Trump also has his eyes set on the Arctic. Earlier this year, he repeatedly threatened to take control of Greenland, an autonomous territory of EU member Denmark. The move deeply shook the transatlantic alliance.

Trump ultimately backed down, and an agreement was reached that expands the US local military presence.

The document does not criticise the US. The text notes only that “a predictable partnership is central to European and transatlantic security”.

The EU has been reinforcing its regional presence in recent years. European Commission President Ursula von der Leyen has visited Greenland twice since 2024. During those visits, she opened a local EU office and announced a 200 million euro ($225 million) investment.

Under the new strategy, the EU will commit to hosting regular Arctic summits and pursuing co-financed projects with partners across the region.

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AfD leader Weidel calls funding lost Ukraine war a grave mistake

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Alice Weidel, co-leader of the Alternative for Germany party and co-chair of its Bundestag parliamentary group, answered questions from Zanny Minton Beddoes, editor-in-chief of the weekly news magazine The Economist.

In the interview, Weidel offered broad evaluations spanning Germany’s energy crisis, the war in Ukraine, the fiscal balances and debt crisis of the European Union, and the country’s asylum and immigration policies.

Openly criticizing the Berlin government’s current foreign and security posture, Weidel stated that Germany is pursuing a policy that does not directly protect its interests, creating a situation that inflicts immense damage on the national economy.

“Foreign policy must serve our national interest”

During the interview, Weidel was asked whether Russia crossing Ukraine’s borders poses a threat to European nations and members of the North Atlantic Treaty Organization.

Stating that framing the issue through a threat dichotomy is incorrect, Weidel said, “I do not think it is a question of whether there is a threat or not. I believe German foreign policy should be judged by the criterion of whether it serves our national interest.”

Saying that the German Federal Government’s current actions have created a grave situation, Weidel remarked, “Acting the way our government is acting right now produces a very damaging outcome for us.”

Addressing the economic curbs in place, Weidel remarked, “I have not even mentioned the sanctions yet. While we implement sanction packages one after another, Donald Trump is talking with Vladimir Putin about more diesel deliveries.”

Pointing out that major powers act pragmatically, Weidel continued, “At the same time, they are also talking about oil and natural gas, aren’t they? We would want the same for Germany.”

Weidel was asked whether it is a legitimate imperative for Germany and other Western European countries to back a democratic country defending itself against overt aggression.

Taking direct aim at Ukraine’s governing structure, Weidel said, “As democratic as it gets. They are no longer holding elections for a new president.”

Referring to the perspective in Washington, Weidel said, “That is precisely why the American president insists on new presidential elections, because he thinks Zelensky is not the right person at the right time.”

When reminded that elections cannot be held in Ukraine due to the state of war and martial law, Weidel criticized how the narrative is constructed and recalled that they had previously condemned Russia’s attack.

Addressing the legal framework at the onset of the conflict, Weidel stated, “When we speak about an aggressor and a non-aggressor, we also criticized Russia’s attack on Ukraine, because Ukraine is a sovereign country. Full stop. There can be no debate about this.”

“Wrong to finance a lost war”

Emphasizing the need to focus on the current impasse dragging the continent down, Weidel stated that the prevailing balance is unsustainable.

“However, we are now in the current status quo. And this status quo is terrible,” Weidel said.

Drawing attention to the scale of devastation, Weidel said, “Not only because of people dying, families losing their sons, the destruction of infrastructure and refineries, and soaring diesel prices. There is an incredibly high security risk for all countries, primarily European nations.”

Saying this trajectory must be halted, Weidel stated, “Therefore, we must put an end to this. This is in our interest, because I am a German politician.”

Noting that she must place Germany’s priorities at the centre, Weidel asked, “I have to evaluate every German foreign policy: Is it in our national interest, or is it not?”

Sharply criticizing Berlin’s current measures, Weidel said, “This prolongation and the measures the German government is currently taking pose an enormous risk to our country.”

Expressing that Ukraine cannot achieve a military victory, Weidel assessed, “We find it wrong, I find it wrong, to continue prolonging and financing a war that is already lost.”

Pointing to the disparity in capacity between the two countries, Weidel stated, “Unfortunately, you can truly say that Ukraine is too small. It is impossible for Ukraine to defeat Russia.”

Weidel summarized the point reached by saying, “So what do we do now? There is a lost war.”

In response to the objection that Russian President Vladimir Putin is not interested in peace and continued to strike Ukrainian cities throughout the winter, Weidel noted that the same question must be directed to the other side.

Touching on the search for evidence to halt the conflict, Weidel said, “Can you show me a single piece of evidence that Vladimir Putin is interested in peace? And can you show me a single piece of evidence that Zelensky is interested in peace?”

When presented with reports that the Ukrainian side is ready for talks on a ceasefire and a halt to strikes on energy infrastructure, Weidel highlighted the financial burden borne by Germany.

Asked whether Germany should cut aid, Weidel replied, “We have already spent more than 100 billion. No other country has spent this much, and we have run heavily into debt.”

Summarizing her political stance in clear terms, Weidel said, “Yes, I put my country’s interests first. Germany comes first.”

Stating that the current conflict poses a direct threat, Weidel remarked, “This war is not in our interest, and it is very, very dangerous for our national security.”

Noting that a security architecture must be built impartially to achieve a lasting compromise, Weidel said, “To reach peace in Ukraine, we must take into account not only Ukraine’s security interests, but also Russia’s security interests.”

Criticizing past Western policies, Weidel assessed, “That was the great mistake made in the past and over the last two decades: failing to recognize Russia’s security concerns.”

“We will definitely have a bond market crisis”

In the interview, it was recalled that Marine Le Pen, parliamentary group leader of the National Rally party leading French opinion polls, wants infrastructure projects financed with European Central Bank resources.

Asked about scenarios regarding Europe’s future leadership structure, Weidel stated that Le Pen acts in line with French interests.

Pointing to the fiscal transfer dynamics within the European Union, Weidel said, “Germany is the main financier of the European Union, and France gets the money. Just like other countries.”

Expressing understanding for Le Pen’s approach, Weidel said, “Of course, from her perspective, I would do the same. She wants to do the best for her country.”

Touching on the vulnerability in France’s fiscal structure, Weidel remarked, “Even while France is already in a massive debt crisis with roof-hitting interest rates, it wants debt forgiveness without compensation.”

Emphasizing market uncertainty, Weidel said, “I do not know what they will do in the capital markets, do they? But Germany is in almost the same situation.”

Drawing attention to Berlin’s debt burden, Weidel observed, “Our public debt is climbing rapidly.”

Weidel responded decisively when asked whether a sovereign bond crisis could emerge in Europe if financial markets price in these statements.

Pointing to potential turmoil, Weidel stated, “Definitely. We will definitely have a bond market crisis.”

Noting that the debt burden is not confined to a few countries, Weidel said, “With such high public debt, this applies not only to France, but also to Italy, Spain, Portugal, and Germany.”

Criticizing the federal government’s new borrowing decisions, Weidel said, “With this new debt programme of Germany, our interest rates on the capital market are already rising. We too are now a debtor country.”

“Syrian and Afghan nationals must return home”

During the interview, concerns felt by millions of people of migrant background living in Germany regarding the policies of the party, described as far right, were raised.

Asked whether Syrian and Afghan asylum seekers with legal status could remain in the country, Weidel responded through existing legislation.

Arguing that the legal grounds have ceased to exist, Weidel stated, “To be honest, our laws, our asylum law clearly states: the moment the reason for coming to our country disappears, they must leave.”

Pointing to Syrians as an example, Weidel said, “Especially for Syrians, since you mentioned them, let us take that example: the justification that they are refugees, asylum seekers here and need protection has now ended.”

Criticizing financial support, Weidel said, “They receive mountains of money from the state here, but that does not matter right now. They must return to their own countries. They need to leave our country.”

Saying that the German administrative apparatus must enforce the rules, Weidel said, “Law enforcement in Germany is very clear.”

Arguing that all Syrians should be sent back, Weidel assessed, “Because the war in Syria has ended, 100% of Syrian citizens must return to their countries.”

Targeting the Federal Government’s Afghanistan policy as well, Weidel said, “Just like the Afghans whom our government virtually decided to bring to our country by plane.”

Sharply criticizing these evacuation decisions, Weidel remarked, “I do not know how you arrive at this unacceptable policy of flying Afghans in from Afghanistan.”

Addressing rising security statistics, Weidel said, “Since the borders were opened in 2015, our crime rates have gone through the roof.”

Pointing to serious crime categories, Weidel said, “Syrians and Afghans constitute the main group for the most serious crimes, such as rape, homicide, and violent offences.”

Saying security measures must be implemented immediately, Weidel stated, “We must send these people back, and detain criminals and extremist religious leaders. We do not want a caliphate in our country.”

Touching on the situation of Ukrainian refugees, Weidel noted that they oppose permanent settlement.

Pointing to a return timetable for people fleeing the war, Weidel said, “I have not even mentioned Ukrainians yet. When this war ends, Ukrainians must also leave our country.”

Giving a figure for the total population that must depart, Weidel said, “In total, this means millions of people; it reaches roughly four to five million, and they must leave our country.”

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