European Commission Proposes Budget Reform for 2028-2032, Facing Opposition from MEPs and Regional Representatives

In an effort to reform the European Union’s common budget for the 2028-2032 period, the European Commission has proposed consolidating over 50 funding programs into a smaller number of core funds, Euractiv reports.

This initiative aims to increase budgetary flexibility and grant national governments greater autonomy in allocating funds. However, the plan has faced significant opposition from Members of the European Parliament (MEPs) and the Committee of the Regions, who have expressed concerns about its potential impact on regional cohesion and agriculture.

Representatives of European regions have voiced worries about the increased influence this proposal would give to national governments at the expense of local and regional authorities.

They argue that such centralization of financial decision-making could undermine the principle of subsidiarity and reduce the efficiency of project implementation at the local level.

Additionally, there are concerns that funding for the Common Agricultural Policy (CAP) could be negatively affected. In October 2024, the Hungarian Presidency of the EU Council published conclusions defending a dedicated CAP budget amid speculation that the Commission planned to merge this budget with other funds.

This position reflects the concerns of member states that rely on CAP funding to support their agricultural sectors and rural communities.

The European Commission’s proposal aims not only to simplify the budgetary structure but also to address emerging challenges, such as increasing defense expenditures and managing the repayment of debt accumulated during the COVID-19 pandemic.

However, critics warn that such a restructuring could lead to an unfair allocation of resources and widen regional disparities, contradicting the EU’s fundamental goal of economic and social cohesion.

Amid these debates, it is crucial for European institutions to strike a balance between the need to adapt the EU budget to new realities and challenges and the obligation to ensure a fair distribution of funds that supports the harmonious development of all regions and economic sectors.