European Commission proposes EUR 2 Trln long-term budget

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.

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.

The plan includes a new EUR409-billion 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, EUR131 billion 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 EUR100 million in any EU country.

Approval of the budget requires unanimous agreement from all 27 EU member states and the endorsement of the European Parliament. (EUR1 = US$1.16)

--BERNAMA-XINHUA