• The European Commission proposed a €2 trillion budget for 2028-2034 to support competitiveness, agriculture, and Ukraine's recovery.
• Germany voiced immediate opposition, labeling the budget as excessive during a period of national budget consolidation.
• A new corporate tax targeting companies with over €100 million turnover aims to generate significant annual revenue for the budget.
• The budget allocation includes a massive €451 billion competitiveness fund, particularly enhancing defence spending fivefold to €131 billion.
• Farmers protested against potential cuts to agriculture subsidies despite promises of €300 billion in support.

The European Commission on July 16 proposed a long-term budget of €2 trillion, designed to bolster the EU's competitiveness and support Ukraine amid ongoing geopolitical challenges. This budget, meant for the period between 2028 and 2034, also focuses on increasing defence spending due to heightened tensions with Russia, aiming for greater economic independence. Commission President Ursula von der Leyen described the proposal as "the most ambitious ever proposed," emphasizing a sharp vision for Europe’s future, according to Le Monde and Channel News Asia.

Germany's government quickly expressed opposition to the budget, deeming the €2 trillion figure excessive, especially considering the need for significant contributions to repay debts incurred during the COVID-19 pandemic. They stated that “a comprehensive increase in the EU budget is not acceptable” at this time, according to Bangkok Post and The Jakarta Post.

The budget proposal also includes a new tax on companies with a turnover exceeding €100 million, projected to contribute approximately €6.8 billion annually. This is part of a broader strategy to raise €58 billion each year from various new revenue sources, intended to help offset increased budgetary demands, as per Reuters.

Included in the budget is a €451 billion competitiveness fund, which significantly boosts allocations for defence projects to €131 billion, reflecting a prioritization of military readiness as Europe navigates complex global threats. Farm unions have criticized proposed cuts to traditional agricultural subsidies, fearing diminished support amidst growing demands elsewhere, according to Reuters and Le Monde.

The plan also designates around €100 billion for Ukraine, further fueling discontent among member states like Hungary, where Prime Minister Viktor Orban criticized the budget for favoring foreign aid over local agricultural needs. Protests from farmers across Europe have already emerged, condemning perceived inequities in the budget, particularly with the planned reductions in the Common Agricultural Policy funding, reported by Channel News Asia and Bangkok Post.