What opportunities could the EU's multiannual budget open for Ukraine?
Budget battles around the European Union’s new multiannual financial framework are intensifying.
New geopolitical challenges and the prospect of admitting new members create additional opportunities for candidate countries. At the same time, delays, and in some cases even regression, in reforms work against them.
Read more about what financial support Ukraine and other candidate countries may be able to claim from the European Union in the article by Anton Alimov of the New Europe Center: The EU budget at the starting line: how Ukraine can secure more funds in the new EU financial cycle.
There is growing recognition inside the European Union that significant changes are needed to respond to new challenges.
This shift is already reflected in the draft of the new Multiannual Financial Framework (MFF) for 2028-2034. Overall, the initial budget proposal can be described as an attempt to adapt to the new geopolitical realities on the continent.
This opens new opportunities, particularly for strengthening foreign policy, establishing a joint defence system and boosting competitiveness.
The greatest increase is planned for programmes related to competitiveness.
According to the European Commission, funding for such programmes will grow by €178 billion. This includes areas linked to technological progress, innovation and the development of security and defence.
For Ukraine, this increase could theoretically mean stronger long-term security and defence cooperation, since funding for joint defence initiatives will come from the European Competitiveness Fund (ECF).
Another important change for Ukraine and other candidate countries is the strengthening of programmes related to enlargement and foreign policy.
The Global Europe programme, responsible for foreign policy, international cooperation, and development, will triple, reaching €215 billion. The programme includes funding for candidate countries, including support for completing the reforms and transformations required for EU membership.
A separate element for Ukraine is the continuation of the Ukraine Facility (€50 billion for 2024-2027), through the creation of a Ukraine Reserve. The European Commission proposes allocating an additional €100 billion under The Ukraine Reserve.
The Ukraine Reserve should be viewed as an instrument designed to cover Ukraine’s urgent budgetary needs.
The proposed amount would provide significant macro-financial assistance tied to clear results and reforms.
Reforms are non-negotiable, but EU history offers examples of candidate countries successfully defending their interests and securing better outcomes.
For example, Croatia’s transformation of its pre-accession funds into full-fledged programmes after joining allowed it to continue and even increase its funding from €94 million to €150 million.
Ukraine could take this example into account and apply it to the Ukraine Reserve if the accession process moves quickly.
Despite increased spending in areas that point to the EU’s growing geopolitical role, the EU budget remains focused on the Union’s own interests.
Even so, there is considerable scepticism about approving the financial framework in its current form.
This means the MFF proposal and its priorities may become even more diluted during further negotiations. Such widespread scepticism within the EU about the draft budget threatens the likelihood of its ultimate approval.