The June 2025 edition of the IRMO Brief, whose authors are Jakša Puljiz, Lea Stanić, and Krševan Antun Dujmović, deals with the complexity and the future of the EU budget. As the EU prepares for its next multiannual financial framework (MFF) envisaged for post-2027, it faces growing pressures from geopolitical crises, mounting debt from pandemic-era borrowing, and a major shift toward defense spending. The introduction of the SAFE instrument – providing up to 150 billion euros in loans to Member States for defense procurement – marks a significant change in EU priorities. At the same time, the repayment of the NGEU debt in the amount of 807 billion euros is expected to begin in 2028, creating fiscal tensions between investment needs and Member State contributions. With discussions on new revenue sources like the Carbon Border Adjustment Mechanism (CBAM) and emissions trading revenues still ongoing, the path ahead remains uncertain. The future EU budget will need to balance solidarity, security, and sustainability in an increasingly complex global landscape.
EU is Bracing for a Heated Debate on Its New Budget
