EU chief unveils new $2.3 trillion budget. Lawmakers say the math doesn’t ‘add up’

European Union President Ursula von der Leyen unveiled a new budget proposal totaling 2 trillion euros ($2.3 trillion) aimed at addressing crises like Russia’s war on Ukraine and climate change, funding infrastructure projects, and supporting farmers’ livelihoods.

The proposal includes a five-fold increase in defense and space spending, a tripling of investment in migration and border management, and sets the stage for two years of negotiations between member states and the European Parliament.

Von der Leyen described the budget plan as the “most ambitious ever proposed,” highlighting its strategic focus, flexibility, and transparency to enhance Europe’s capacity to respond to challenges and strengthen its independence.

However, concerns have already surfaced within von der Leyen’s team and among EU lawmakers who question the budget’s sustainability and impact. They argue that the proposed budget amounts to a real-terms freeze in investment and spending, contradicting the Commission’s goal of avoiding the status quo.

To address funding challenges, von der Leyen emphasized the need for innovative revenue sources, such as leveraging the carbon emissions trading system and introducing new duties like a tobacco tax. These measures are intended to generate additional funds without increasing national contributions to the budget.

Despite the financial constraints, the EU also faces the task of repaying debts incurred during the COVID-19 pandemic while allocating resources for Ukraine’s post-war recovery and potential EU membership path.

As discussions continue on the budget proposal, stakeholders like farmers have raised concerns about the budget’s impact on essential sectors like agriculture. The debate surrounding the budget’s priorities and financial mechanisms underscores the complexities of shaping Europe’s future ambitions and resilience in a rapidly evolving global landscape.

Associated Press journalist Sylvain Plazy in Brussels contributed to this report.