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New EU Budget Proposal Totals $1.85 Trillion, Doubles Ukraine Facility
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![Photo of Roman Kohanets]( "Photo of Roman Kohanets")
-111f0e5095e02c02446ffed57bfb0ab1.jpeg "Photo of Roman Kohanets")
The European Commission, led by President Ursula von der Leyen, has proposed a landmark approximately $1.85 trillion long-term budget for 2028–2034, featuring a doubled $108 billion Ukraine Facility alongside major boosts to cohesion, competitiveness, and global policy portfolios, pending unanimous ratification by member states, as was reported by Politico sources on July 16.
In its new draft, the Commission seeks to raise total commitments to 1.23 percent of EU GDP, up from 1.07 percent in the current plan, reflecting what von der Leyen described as the “only way to deliver on our Union’s promises to citizens”.
A dedicated Ukraine Facility that provides funds in grants and loans over seven years is doubling the previous envelope in the 2021–27 budget.
The proposed spending breakdown includes:
Approximately $1.04 trillion for cohesion and social convergence policies, boosting regional development and social funding;
Approximately $573 billion for competitiveness and innovation, chiefly under Horizon Europe, InvestEU, and digital transition;
Approximately $209 billion for the Global Europe foreign-policy instrument;
$118 billion to cover administration, justice, and climate objectives.
Following agreement by the College of Commissioners, EU capitals and the European Parliament must negotiate to secure unanimity.
The budget represents the first test of consensus under the new EU Council presidency and amid calls for greater financial solidarity, particularly on defense, border security, and energy resilience.
Earlier, it was reported that Luxembourg had boosted its Ukraine Energy Support Fund by $13 million amid intensifying Russian attacks, aiming to strengthen civilian energy resilience.
