The European Commission’s budget proposal for 2028–2034 is way too cautious and still firmly rooted in outdated transfer mechanisms. Once again, the core of the EU budget rests on agricultural and cohesion funds, now partly repackaged into national and regional envelopes. This model relies heavily on permanent subsidy-transfers, inevitably fuelling discontent in many net contributor countries.
On the positive side, MEP Aura Salla welcomes the Commission’s shift toward more loan-based instruments. The new Competitiveness Fund is built on the successful InvestEU guarantee-model, using EU money to unlock private investment in market-driven, profitable projects. This is precisely where EU funds are most effective. By contrast, direct transfers and social funds, in areas where the EU lacks genuine competence, are neither efficient nor sustainable.
MEP Salla also finds it important that the Commission has proposed capping the overall volume of national envelopes while maintaining flexibility to reallocate funds where they are needed most. It is a step forward that support for Ukraine is now structured as a dedicated, annually reviewed programme, and that the Global Europe instrument provides agility to respond to reconstruction and military aid needs.
However, MEP Salla cannot support growing the EU budget through higher national contributions or common debt. The only sustainable way to increase the EU’s financial resources is to expand the Union’s own revenue streams. Tobacco and e-waste levies are a good start, but they bring in only modest revenues. The proposed corporate levy’s threshold is also far too low, it should primarily target large foreign companies operating in the EU, especially the digital giants. Unfortunately, the Commission did not have the courage to revive the digital tax, apparently still deterred by fears of new US tariffs.
What MEP Salla wants to see is a more ambitious shift in budget priorities: we can cut cohesion funds and nationalise agricultural subsidies, freeing up resources to invest in the EU’s critical defense and security capabilities and prepare for future enlargement. Without real courage, this essential overhaul of the EU budget risks falling flat. We need to build a budget that puts Europe finally first in terms of competitiveness and overall security.
