European Commission proposes €2 trillion budget for 2028–2034
On 16 and 17 July, the European Commission proposed a €2 trillion budget for the EU’s next Multiannual Financial Framework (MFF), covering 2028 to 2034. This marks a significant increase from the current MFF (€1.211 trillion) and sets long-term EU spending priorities across regional development, climate, transport, digitalisation, research, and innovation.
The MFF is reviewed every seven years and must be jointly adopted by the European Commission, Parliament, and Member States.
Key highlights
- €865 billion for national and regional development, including €200 billion for less developed regions
- €234 billion for the new European Competitiveness Fund (ECF), supporting innovation, industrial decarbonisation, digital transition, and defence
- €175 billion for the next EU research programme, Framework Programme 10 (FP10) - nearly double the current Horizon Europe budget
The Innovation Pillar
Under FP10, the Innovation Pillar - which includes the European Institute of Innovation and Technology (EIT) and its Knowledge and Innovation Communities (KICs) such as EIT Urban Mobility - is expected to triple in budget, from €12 billion to €38.7 billion. Of this, €25 billion is earmarked for clean transition and industrial decarbonisation, including mobility.
While EIT and KICs are not explicitly named, FP10’s structure reinforces the EU’s support for innovation ecosystems, applied research, and the knowledge triangle - core to the EIT model.
Spotlight on mobility and transport
The European Competitiveness Fund will allocate €26 billion to clean and sustainable transport, including:
- Multimodal and low-emission mobility
- Smart and connected solutions (e.g. autonomous vehicles)
- Safe, sustainable mobility in cities and rural areas
These priorities align with EIT Urban Mobility’s mission and our community.
What’s next?
This proposal marks the start of a two-year negotiation process, involving the European Commission, the European Parliament and Member States, with formal discussions beginning after summer. EIT Urban Mobility will continue to follow developments, engage with decision-makers, and advocate for the role of innovation ecosystems in achieving EU goals.
We will keep our community informed as the process evolves.