Key facts
- The EU's 2028-2034 budget proposal was published on October 10.
- Dedicated support for Ukraine is set at 88.87 billion euros.
- The 'Global Europe' fund has been reduced to 149 billion euros from 169.5 billion euros.
- Funding for EU candidate countries has been cut by almost four billion euros, down to 32.6 billion euros.
- The budget requires unanimous approval from all 27 EU member states.
A compromise proposal for the European Union's 2028-2034 budget, published October 10, aims to maintain financial backing for Ukraine while trimming funds allocated to EU candidate countries and the bloc's broader development and humanitarian aid.
The proposal, put forth by the Irish Council Presidency, includes 88.87 billion euros ($99.55 billion) for Ukraine, an amount unchanged from a previous attempt but below the European Commission's initial 100 billion euro ($112 billion) suggestion. Despite this dedicated support, the overall 'Global Europe' fund, which covers development, humanitarian aid, and pre-accession support, has been reduced by over 20 billion euros ($22.4 billion) to 149 billion euros ($167 billion).
Within this reduced fund, support specifically earmarked for EU candidate countries has seen a cut of almost four billion euros ($4.5 billion), bringing it down to 32.6 billion euros ($36.5 billion) from 36.5 billion euros ($40.9 billion). However, the proposal suggests that additional funding for Ukraine could be prioritized from other pillars, potentially mitigating the impact of this cut on Kyiv.
The budget requires unanimous approval from all 27 EU member states, and several countries, referred to as 'the frugals', are pushing for significant cost reductions. The bloc aims to finalize the budget by the end of 2026, ahead of a wave of national elections in 2027.
Long-term funding for Ukraine remains a significant concern, with the country anticipating a $42 billion budget deficit in 2027, even with an existing 90 billion euro ($100.9 billion) EU loan. A senior EU official acknowledged "massive uncertainty" regarding the long-term financial support for Ukraine due to the ongoing war.