EU to Unveil Budget Plan as Defense Demands Bite

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All eyes are on the European Commission today as it unveils its proposal for the EU’s next seven-year budget which will govern spending between 2028 and 2034. Brussels is scrambling to find a balance between the need to bolster Europe’s competitiveness and defense and the demands of traditional sectors like farming. Negotiations continued well into the night to try and strike a deal. Protesting farmers are expected to descend on Brussels as they try to maintain their share of the budget, which currently accounts for about a third of spending. One unknown is whether the controversial issue of joint debt will be included in the proposal. Trump’s plan to allow the EU to pay for arms to Ukraine is piling pressure on Europe to find ways of financing the bloc’s defense-spending ambitions.