Today (17 July 2025) the EU Commission unveiled its vision for the European Union's future with the announcement of the next Multiannual Financial Framework (MFF). The €2 trillion budget plan aims to steer the bloc through 2028 to 2034. President Ursula von der Leyen described the proposal as “the most ambitious ever” and a transformative push to match Europe’s aspirations and challenges.
The budget which aims to strengthen the EU’s independence, competitiveness, and capacity to address both ongoing and emerging issues focuses on the following key areas.
Investing in People, Regions, and Member States
The National and Regional Partnership Plans allocate €865 billion for investment and reform, consolidating a range of funds that previously operated in parallel to ensure a more integrated and efficient approach. Within this framework, €300 billion is dedicated to safeguarding farmers’ income support, while a minimum of €218 billion is reserved for less-developed regions, underscoring the EU’s commitment to agriculture and regional cohesion.
For the first time, a 14% target for social expenditure has been established, accompanied by comprehensive tracking across the entire Multiannual Financial Framework.
In addition, there will be a tripling of investment in migration management, border controls, and disaster solidarity, reinforcing shared European responsibility in these key areas.
Further supporting common objectives, the new Catalyst Europe facility will provide loans of up to €150 billion to enable member states to enhance investments in vital European priorities, including defence, energy infrastructure, and strategic technologies.
Competitiveness Fund
Arguably the most important fund for the digital and tech sector, the competitiveness fund aims to be the answer to the calls made under the Draghi and Letta reports.
The fund will allocate close to €410 Billion in order to “back the strategic technologies of tomorrow”. The fund contains a doubling of the Horizon Europe research programme, a fivefold increase in digital investment, and a sixfold boost for clean tech, decarbonisation and the bioeconomy.
The competitiveness fund was highlighted as part of “an agenda for European sovereignty” which will enable Europe to “secure supply chains, scale-up innovation, and lead the global race for clean and smart technology”
Under the fund, Defence and Space will see itself allocated a €131 billion budget, a fivefold increase compared to the previous budget aiming to strengthen europe’s industrial and security capabilities.
Connecting Europe
The Commission will double the Connecting Europe Facility for transport, increase the budget for military mobility tenfold, and increase fivefold the budget for energy infrastructure, reinforcing energy independence and cyber resilience.
Global Europe
€200 Billion for Global Action: A 75% boost for external action, uniting Global Gateway, humanitarian aid, and EU enlargement support.
Ukraine Facility: €100 billion ringfenced for Ukraine’s reconstruction, resilience, and accession pathway.
Accession Clause: Provision for MFF revision in case of new EU accessions, mirroring previous accession protocols.
Crisis Readiness
Crisis Mechanism: Nearly €400 billion in dedicated firepower for swift response to emergencies, a lesson learned from recent health and energy crises.
Flexibility: Designed for agility, the new budget includes mechanisms aimed at providing more flexibility to quickly adapt to unforeseen challenges.
Rule of Law, Accountability, and New Revenue
All European Union funding, particularly that allocated through the partnership plans, will be firmly conditioned on adherence to rule-of-law standards and fundamental rights. At the same time, the EU aims to introduce innovative “own resources” revenue streams, a move designed to keep national contributions stable while ensuring the repayment of collective borrowing from its recovery programs
Investments in Youth, Civil Society, and Media
Erasmus+: A 50% increase in funding for the flagship youth program.
Civil Society & Media: Launch of the new Agora EU program, merging existing initiatives to support democracy, civil rights, media freedom, and cultural diversity.
Next steps
The EU Commission will now bring this budget proposal to the EU Member States in the Council where the MFF will require unanimity, following the consent of the European Parliament.
We will continue to monitor developments, especially when it comes to understanding what increased funds mean for programmes that the UK is associated with (such as Horizon Europe)
For more information, please contact:
Theophile Maiziere
Policy Manager - EU, techUK
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
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Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.
Based in Brussels, she leads our EU policy and engagement. She is also our lead on international trade policy, with a focus on digital trade chapter in FTAs, regulatory cooperation as well as broader engagement with the G7, G20, WTO and OECD.
As a transatlanticist at heart, Sabina is a GMF Marshall Memorial fellow and issue-lead on the EU-US Trade and Technology Council, within DigitalEurope.
Previously, she worked as Policy Advisor to a Member of the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.
Sabina loves building communities and bringing people together. She is the founder of the Gentlewomen’s Club and co-organiser of the Young Professionals in Digital Policy. Previously, as a member of the World Economic Forum’s Global Shapers Community, she led several youth civic engagement and gender equality projects.
She sits on the Advisory Board of the University College London European Institute, Café Transatlantique, a network of women in transatlantic technology policy and The Nine, Brussels’ first members-only club designed for women.
Sabina holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.
Policy Manager for International Policy and Trade, techUK
Daniel Clarke
Policy Manager for International Policy and Trade, techUK
Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.
Before techUK, Dan worked for data and consulting company GlobalData as an analyst of tech and geopolitics. He has also worked in public affairs, political polling, and has written freelance for the New Statesman and Investment Monitor.
Dan has a degree in MSc International Public Policy from University College London, and a BA Geography degree from the University of Sussex.
Outside of work, Dan is a big fan of football, cooking, going to see live music, and reading about international affairs.
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
Lewis' programmes cover a range of policy areas within Market Access (international trade regulation, sanctions and export controls, technical standards and product compliance, supply chains) and Consumer Tech (media and broadcast policy, consumer electronics, and connected home technology).
Prior to joining techUK, Lewis worked in government affairs and policy roles for international trade associations in Southeast Asia including the American Malaysian Chamber of Commerce and the European Chamber of Commerce in Cambodia.
He holds an undergraduate degree in Social and Political Sciences from the University of Cambridge and an MSc in Public Policy & Management from SOAS University of London.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
