The EU proposes to raise financing for protection in the budget for 2 trillion euros

On Wednesday, the European Union’s executive hand made a proposal of 2 trillion euros ($ 2.31 trillion) to the block, and a significant increase in financing allocated for defense.

The frame is 1.26% of the EU’s average national income and will operate for a seven -year period since 2028.

“This is the budget today, as well as the problems of tomorrow,” said the President of the European Commission Ursula von der Leyen during a press conference. About 35% of the budget will go to climate projects and biodiversity, she said.

Von der Leyen said the EC proposed to allocate 131 billion euros to support investment and space, which has increased five times from current costs within its new European Competitiveness Fund.

European countries have Widely promising This year, to go for national defense expenses in response to geopolitical problems, thereby increasing the company’s shares in the sector and attracting private capital. Von der Leen – said in March The fact that Europe was in its “Reziki border” and could mobilize EUR 800 billion for defense investments through loans and other programs.

The new budget plan seeks to streamline EU financial programs so that citizens and companies can easily access financing, the EC reports.

The Member States’ deposits will remain unchanged, while the EU is looking for five new revenue streams to get 58.5 billion euros per year, including non-collected e-waste and new duties on tobacco products, as well as a one-time contribution from companies that generate an average of 6.8 billion.

Other measures include revenue revenue support for farmers and fishermen, tripping migration management up to 34 billion euros and 100 billion euros in support of Ukraine.

The proposal is still to be approved by the European Parliament and EU member states and can transfer changes to the process.

Dutch Financial Minister Eellel, Heinen said in a statement that the budget proposal was “too high” and that the EU should focus on how cash can be spent better.

Common figures generally correspond to expectations, Karsten Brzeska, Macros Research Head, CNBC said.

“Contrary to the EU budget history, the breakthrough notes today, because it is not only the largest budget in absolute terms, but also in the percentage of GDP.”

“However, in the greater scheme of things, the increase is still too small to meet all the costs and investments that need Europe. If Europe really wanted to follow the recommendations Report of the draft“The 2% GDP budget would be needed,” he continued, noting that it would be “politically impossible”.

Instead, the national government and private capital still needed to finance a large piece of investment needs in Europe, Brzeza.