The new Catalyst Europe facility is set to provide up to €150 billion in loans to support member states investing in critical areas such as defence and energy infrastructure.

On July 17, 2025, the EU Commission announced an ambitious €2 trillion budget plan for 2028 to 2034, aiming to strengthen the bloc's independence, competitiveness, and capacity to tackle emerging challenges.

Funding for programs like Erasmus+ will increase by 50%, and a new Agora EU initiative will focus on promoting democracy, civil rights, and media freedom across Europe.

The budget emphasizes investment in people, regions, and member states, with a focus on strategic sectors to enhance overall resilience.

Nearly €410 billion will be allocated to a Competitiveness Fund supporting strategic technologies, doubling investments in Horizon Europe and boosting funding for digital and clean tech.

All EU funding will be contingent on adherence to rule-of-law standards, and new revenue streams are planned to stabilize contributions and manage collective borrowing.

A significant €200 billion is dedicated to Global Europe initiatives, including €100 billion for Ukraine's reconstruction and accession efforts.

Investment in migration management, border controls, and disaster solidarity will triple, reflecting a shared European responsibility in these areas.

For the first time, the budget sets a 14% target for social expenditure, with mechanisms in place to track progress across the Multiannual Financial Framework.

The proposed budget will be presented to EU Member States, requiring unanimity and approval from the European Parliament.

Transport infrastructure funding will double through the Connecting Europe Facility, while budgets for military mobility will increase tenfold and energy infrastructure fivefold to bolster energy independence.

A total of €865 billion is allocated for investment and reform, including €300 billion for farmers’ income support and €218 billion for less-developed regions to promote regional cohesion.

A Crisis Mechanism providing nearly €400 billion will enable rapid emergency responses, reflecting lessons learned from recent crises.

Defense and space budgets will rise to €131 billion, aiming to enhance Europe's security and industrial capabilities.