EU unveils 2028–2034 budget proposal, includes CORE corporate contribution

The framework provides Europe with a long-term investment budget to support its ambitions for independence, prosperity, security, and economic growth over the next decade.

The European Commission presented its 2028-2034 budget proposal for an ambitious and dynamic Multiannual Financial Framework (MFF) on 16 July 2025, amounting to almost EUR 2 trillion (or 1.26% of the EU’s gross national income on average between 2028 and 2034). This framework will equip Europe with a long-term investment budget matching its ambitions to be an independent, prosperous, secure, and thriving society and economy over the coming decade.

Europe faces an increasing number of challenges in numerous areas such as security, defence, competitiveness, migration, energy and climate resilience. These are not temporary but reflect systemic geopolitical and economic shifts that require a strong and forward-looking response.

The Commission proposes a fundamental redesign of the EU budget, which will be more streamlined, flexible, and impactful. It will significantly enhance the EU’s capacity to deliver on core policies while addressing new and emerging priorities. This budget will continue to support people, business, Member States, regions, partners, and the EU’s collective future.

A modern EU budget requires modernised and stable sources of income. That is why the Commission is also proposing new own resources and adjustments to existing ones, which will ease pressure on national budgets, generating EUR 58.5 billion per year.

President von der Leyen stated: “Our new long-term budget will help protect European citizens, strengthen Europe’s social model and make our European industry thrive. In a time of geopolitical instability, the budget will allow Europe to shape its own destiny, in line with its vision and ideals. A budget that supports peace and prosperity and promotes our values is the best tool we can have during these uncertain times.”

Key features of the new MFF

• More flexibility across the budget, so Europe has the capacity to act and react fast when circumstances change unexpectedly or when new policy priorities need to be addressed.
• Simpler, more streamlined and harmonised EU financial programmes, so that citizens and companies can easily find and access funding opportunities.
• A budget tailored to local needs, with National and Regional Partnership Plans based on investments and reforms, for targeted impact where it matters most and ensuring a faster and more flexible support for more economic, social and territorial cohesion across our Union.
• A powerful competitiveness boost, for Europe to secure supply chains, scale-up innovation and lead the global race for clean and smart technology.
• A balanced package of new own resources that ensures adequate revenues for our priorities while minimising pressure on national public finances.

New own resources to match the EU’s common ambition

To give itself the means to act, Europe must also equip itself with a modern and diversified revenue stream. In turn, this will create means to fund its priorities while repaying what the EU has borrowed under NextGenerationEU and limiting the national contributions to the EU budget.

To that end, the Commission presents five new own resources:

• EU Emissions Trading System (ETS): targeted adjustment of the revenues generated from ETS1 go to the EU budget. Expected to generate around EUR 9.6 billion annually, on average.
• Carbon border adjustment mechanism (CBAM): targeted adjustment of the revenues generated from CBAM go to the EU budget. Expected to generate around EUR 1.4 billion annually, on average.
• An own resource based on non-collected e-waste through the application of a uniform rate to the weight of non-collected e-waste.  Expected to generate around EUR 15 billion annually, on average.
• A tobacco excise duty own resource, based on the application of a rate on the Member State-specific minimum excise duty rate levied on tobacco products. Expected to generate around EUR 11.2 billion annually, on average.
• A Corporate Resource for Europe (CORE)​, amounting to an annual lump-sum contribution from companies, other than small and medium-sized companies, operating and selling in the EU with a net annual turnover of at least EUR 100 million.​ Expected to generate around EUR 6.8 billion annually, on average.

Combined, these five new own resources and other elements of the own resources package put forward are estimated to generate revenue of approximately EUR 58.5 billion per year (in 2025 prices).

The proposed CORE aims to ensure that the corporate sector, operating in the world’s biggest single market with more than 450 million consumers, contributes to the financing of the EU budget. The own resource will focus on EU companies and companies of third countries having a permanent establishment in the EU with an annual net turnover above EUR 100 million. The CORE would be established as an annual lump-sum contribution differentiated per companies’ net turnover.

Next steps

The decision on the future long-term EU budget (the 2028-2034 budget proposal) and revenue system will be discussed by Member States in the Council. Adoption of the MFF Regulation requires unanimity, following the consent of the European Parliament. Some elements of the revenue side (notably the new own resources) require unanimity in the Council and approval by the Member States in accordance with their respective constitutional requirements.  The Commission will do everything in its power to support a swift agreement.