Hungary Consents to European Union's Financial Structure Agreement
EU's Proposed Budget for 2028-2034 Awaits Approval Amidst Hungarian Stance Uncertainty
The European Union (EU) is currently in the process of approving its future long-term budget framework, known as the Multiannual Financial Framework (MFF), for the period 2028-2034. The European Commission proposed a nearly €2 trillion budget in July 2025, aiming to strengthen Europe’s security, competitiveness, innovation, and climate resilience.
The proposed budget, however, is yet to be approved, with negotiations among EU Member States in the Council underway. Approval requires unanimity after the European Parliament's consent. The complex negotiations are expected to be challenging due to factors like defense spending commitments by NATO countries and debt repayment obligations stemming from the EU’s Recovery and Resilience Fund.
Regarding Hungary's stance on the MFF approval process, the latest publicly available information does not indicate that Hungary has blocked payments or publicly stated reasons for such action. However, Hungarian Prime Minister Viktor Orban has linked the approval of the new seven-year EU budget framework to the release of all blocked EU payments to Hungary.
In a speech on Saturday, Orban called for a change at the helm of the EU and stated that the Hungarian government would not support the financial plan if Brussels does not disburse the funds. German Finance Minister Lars Klingbeil has also criticized the EU Commission's proposals for the EU budget framework from 2028 to 2035.
As of now, the EU's future budget awaits unanimous approval by Member States, including Hungary. The uncertainty surrounding Hungary's stance on the MFF approval process adds an extra layer of complexity to the negotiations. The outcome of these discussions will significantly impact the EU's future financial landscape and its ability to address pressing issues such as security, competitiveness, innovation, and climate resilience.
[1] European Commission (2025). Proposal for a Regulation of the European Parliament and of the Council on the Union's own resources. [2] Council of the European Union (n.d.). Council of the European Union. [3] European Parliament (2025). European Parliament. [4] European Council (2025). European Council. [5] Financial Times (2025). EU budget negotiations to be tough, warns German finance minister.
- The EU's proposed budget for 2028-2034, incorporating policies related to community, employment, finance, business, politics, and general-news, faces challenges in gaining approval due to Hungary's uncertain stance and potential opposition, thereby adding complexity to the negotiations.
- The European Commission's proposed budget for 2028-2034, encompassing policies like community, employment, finance, business, politics, and general-news, has sparked criticism from German Finance Minister Lars Klingbeil, further complicating the approval process within the EU.
