European affairs expert Veselin Zhelev reveals fundamental transformations in the European Union's multi-annual financial framework, which radically change the previous approach to fund allocation.
The new budget model is characterized by drastic structural changes - from 52 existing programs they are consolidated to 16, which demonstrates an effort to simplify and optimize financial mechanisms.
The key highlights in the proposal include a significant increase in spending for strategic sectors. Financing for defense and space research jumps an impressive 8 times, while funds for innovation grow by 32%.
The budget amounts to 1.717 trillion euros, which represents 1.26% of the union's gross national income. Special attention is paid to crisis mechanisms - a reserve of 100 billion for Ukraine and an additional anti-crisis fund of 400 billion euros are provided.
A significant change is the reorientation from a technocratic to a more political approach to spending. Each member state will be able to individually negotiate its financial plan according to its specific national priorities.
Zhelev emphasizes that traditional budget items such as cohesion policy and agricultural subsidies are giving way to new strategic directions - competitiveness, security, and climate resilience.
The project sparks sharp discussions among European political formations. The most serious criticisms come from parties that otherwise support European Commission President Ursula von der Leyen.
Germany expresses reservations about the scale of the proposed budget, but experts view the initial reactions as part of the negotiation process. The European Parliament expresses concerns about a possible reduction in parliamentary control over financial flows.
The new budget philosophy aims for a more flexible and targeted allocation of funds, focusing on strategic development and adaptability to contemporary geopolitical challenges.
The final adoption of the budget is expected to go through intensive diplomatic negotiations, with each member state seeking to maximize its interests in the new financial framework.