European Commission President Ursula von der Leyen has unveiled a bold €2 trillion (about $2.3 trillion) EU budget proposal that includes new taxes on large corporations, tobacco, and electronic waste—setting the stage for intense political battles over the bloc’s financial and strategic priorities.

The plan aims to reshape Europe’s financial future, increasing defence spending fivefold, tripling border and migration funding, and doubling research investments—35% of which would go to climate and biodiversity efforts.

“It is a €2 trillion budget for a new era ... that confronts Europe’s challenges, that strengthens our independence,” she told reporters at a news conference.

A €100 billion (around $116 billion) fund is also earmarked for Ukraine, labelled by the EU's Budget Commissioner Piotr Serafin, as the EU's “most strategic partner.” But backlash followed swiftly.

Environmental groups and Green MEPs criticized the elimination of the only dedicated nature protection fund, calling it a dangerous move amid the biodiversity crisis.

Farmers and members of the European Parliament were similarly alarmed by a proposed merger of flagship policies such as agricultural and regional funds, warning of severe risks to farming stability.

However, EU officials argued that €300 billion (around $349 billion)  in direct payments to farmers remain untouched.

Von der Leyen said the new taxes would ease pressure on national budgets, but countries such as Germany, the Netherlands, and Sweden criticized the plan as too costly.

Adding further tension, Hungary’s Prime Minister Viktor Orbán condemned the proposed Ukraine funding, insisting EU support should focus on farmers. 

From 2028, the EU must start repaying its €750 billion ($872 billion)  pandemic recovery loans, costing up to €30 billion ($35 billion) annually—double the current research budget.

The proposal requires unanimous approval from all 27 member states and the European Parliament.

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