Commission outlines its proposal for the next long-term budget for 2028-2034
President von der Leyen unveiled the Commission’s proposal for the next long-term budget of the Union, also known as the Multiannual Financial Framework (MFF). The EU budget is crucial to achieving the EU’s political and economic goals.
The Commission’s proposal is based on a MFF reaching almost €2 trillion spread in five action areas:
- Investing in people, Member States and regions
- Foster education and democratic values
- Driving prosperity via competitiveness, research and innovation
- Protecting Europe
- Building partnerships for a stronger Europe in the world
With an annual investment gap of around EUR 23 billion in water services, or the need for investments of around €255 billion by 2030 only to meet some of the EU water legislation and increase water efficiency, this MFF will be essential to ensure the financing of the Water Resilience Strategy and the implementation of the EU water acquis.
The new European Competitiveness Fund (ECF), a core part of the MFF, will invest in “strategic technologies” and “catalyse private and public investments” in clean tech, the digital transition and biotechnologies. Funding for the water sector would fall into the pillar dedicated to financing the EU’s “Clean Transition and Industrial Decarbonisation”.
In addition to the ECF, the development of a water-smart economy will be supported by a EUR 175 billion investment through Horizon Europe. This initiative aims to drive innovation in key policy areas and scale up these innovations. Guided by a ‘Do No Significant Harm’ principle, Horizon Europe effectively supports the advancement of disruptive technologies and promotes circular water solutions, particularly by fostering public and private sector ‘moonshot’ projects.
The EU budget will now be discussed by the co-legislators, who need to give their consent to the Commission’s proposal.
