The European Commission has presented a draft Multiannual Financial Framework for 2028-2034, the next EU budget. The draft budget is estimated at nearly €2 trillion (or an average of 1,26% of the EU's gross national income between 2028 and 2034).
European Commission President Ursula von der Leyen has proposed the creation of a €100 billion fund dedicated to Ukraine. This initiative, as part of the EU's Multiannual Financial Framework (2028-2035), is expected to become the largest long-term financial commitment to a third country in the EU's history. The Commission's website states that "support for Ukraine will be based on a degree of flexibility, taking into account the scale and unpredictability of needs. Support for operations with a military component will continue to be covered by the European Peace Facility."
The €100 billion would be disbursed to Ukraine over seven years, starting in 2028, and could include a combination of grants, loans, and guarantees. As with the current €50 billion Ukraine Facility, which runs from 2024 to 2027, conditionality is likely to play a key role, with funding linked not only to Ukraine's needs but also to progress in reforms, anti-corruption efforts, and the rule of law.
We are writing about this conditional mode because the road from the draft common financial framework to its implementation is quite difficult.
First, the 2028-2024 budget will be discussed by Member States in the Council of the EU. Adoption of the regulation on the multiannual financial framework requires unanimity, after obtaining the consent of the European Parliament.
Second, although planned expenditures for 2028-2034 are comparable to actual EU expenditures in the current financial perspective, new elements are planned on the revenue side (including ETS, CBM, CORE). Some of these require unanimity and approval by Member States in accordance with their respective constitutional requirements.
Thirdly, a new expenditure structure has emerged, which assumes changes – and these are usually questioned by current beneficiaries.
Piotr Serafin, EU Commissioner for Budget, Public Administration and Anti-Fraud, assessed the project with the following words:
"The EU has shown that it can act decisively and ambitiously – during the pandemic, during the war in Ukraine. Let's continue on this path and prove once again that Europe achieves its goals together, with the means to build an independent Europe in the years to come."
Red.
More: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1847