logo
The Brief – Von der Leyen's big budget moment ends in chaos

The Brief – Von der Leyen's big budget moment ends in chaos

Euractiv16-07-2025
A day of cancelled briefings, internal dissent, angry MEPs and confusion over the budget's biggest numbers: Commission President Ursula von der Leyen may very well have gone too far in her bold bid to re-think the EU project.
Fed up with a never-changing EU spending plan under the multiannual financial framework and emboldened by a dual defence and competitiveness crisis, von der Leyen has mobilised all her political savvy to break the status quo and centre the EU project on herself and the European Commission.
Since October , she has been socialising radical ideas for what the next EU budget could look like, and meticulously working behind closed doors on a setup to centralise power in a palatable form for key EU countries.
She overplayed her hand. In the critical moment to make her pitch, von der Leyen faced rebellion within her own Commission and did not appear to present her budget overhaul herself. A proposal was initially expected this morning, with briefings in parliament throughout the day. Instead, they failed to land final numbers, six commissioners rebelled against her funding plan, and Parliament briefings were repeatedly delayed or cancelled throughout the day.
'I have literally no idea what is going on,' Siegfried Mureșan, Parliament's budget co-lead from von der Leyen's own party, told Euractiv at midday.
At the time of writing, the Commission still hasn't provided its actual proposal, despite hours of speeches and presentations.
The curse of unanimity
Von der Leyen is asking a lot of the next budget. Breaking decades of precedent, the Commission wants to put around €900 billion into a megafund to use as leverage to implement EU-friendly reforms and a €410 billion European Competitiveness Fund for flexible industrial investments.
Farmers and regions face serious cuts, wildly unpopular with major recipients of such funds like Poland, Italy and Spain. On top of that, the Commission announced new EU-wide taxes on tobacco, carbon emissions and large companies, which may disproportionately burden many of the same countries.
Von der Leyen's play was bold, and she has already landed some wins. For starters, she's managed to get the two biggest players – Germany and France – to listen to her ideas.
On top of this, she has succeeded in setting the terms of the debate. With Europe in the clutch of so many crises – and found wanting on so many fronts – aligning behind a vision for a competitive continent that can withstand existential economic and security threats is a must.
But von der Leyen may have aimed too high. Not even managing to keep her own commissioners in check, she now faces a daunting task to get every single EU country and hundreds of MEPs onboard.
Parliament doesn't even want to start negotiations with the proposed ideas. A parliament source told Euractiv that Commission bureaucrats are fed up with her radical proposals, and that they eagerly await a chance to pick her proposal apart.
Ursula von der Leyen has successfully shaken up the budget debate. Now, we will see whether a Europe in crisis is ready to succumb to her vision, or if they reject her for going too far.
(jp, cp) Roundup The moment we've all been waiting for: The European Commission proposed the largest long-term EU budget in its history Wednesday, merging historically separate farming and regional spending programmes into country-specific national plans and creating a €400+ billion fund to boost ailing industry, totalling just under €2 trillion, or 1.26% of the bloc's gross national income.
The Šefčovič shuffle: The EU's top trade negotiator Maroš Šefčovič is jetting to Washington on Wednesday for talks with his US counterparts in a renewed push to settle the transatlantic tariffs stand-off. The trip follows Trump's threat of a 30% levy on European goods from 1 August.
Meta fine: The European Commission is still considering whether to impose further fines on Meta over its advertising model under the Digital Markets Act following a €200 million decision against the social media giant's pay-or-consent ad practices earlier this year, citing remaining issues that the company has yet to clean up. Across Europe Must the show go on? – Valery Gergiev, the world-renowned orchestra conductor and known Putin backer, prepares to perform at a state-backed music festival in southern Italy on 27 July despite mounting concern over his performance – though the region's governor supports the show.
My likeness, not yours – The Danish presidency is set to push for EU-wide protection for people's identities, especially to prevent the usage of personal attributes in AI deepfake generation – the law would allow for citizens to require social media companies to take down AI images that imitate them.
Out-of-prime minister runs again – French conservative Michel Barnier of Les Républicains, the EU's former chief Brexit negotiator and briefly serving French prime minister in 2024, has announced his candidacy in a September Paris parliamentary election following the annulment of a Macron-aligned candidate's 2024 victory.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Even corruption probes can't ground Sánchez's holiday plans
Even corruption probes can't ground Sánchez's holiday plans

Euractiv

time2 hours ago

  • Euractiv

Even corruption probes can't ground Sánchez's holiday plans

As Pedro Sánchez lands in the Canary Islands for his annual summer retreat, the turbulence rocking his government is still waiting for him on the mainland Euractiv is part of the Trust Project Inés Fernández-Pontes Euractiv Jul 28, 2025 05:40 4 min. read Analysis, News Based on factual reporting, although it Incorporates the expertise of the author/producer and may offer interpretations and conclusions., Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. MADRID – Under fire at home and in the air, the Spanish prime minister is learning that even a corruption scandal can't cancel summer in the Canary Islands. A bombshell police report released in early June has detonated what many now call the gravest crisis of Sánchez's time in office – a sprawling 'mafia-like' corruption scheme allegedly rooted deep within the ruling Socialist Party (PSOE). Before boarding his return flight from Paraguay, where he had wrapped up a three-day tour of Latin America, Sánchez calmly told journalists that he 'felt strong," despite the political crisis that had forced some of his key allies to step down. But the scandal is likely to follow him to his annual summer retreat. At a tense Tuesday Council of Ministers meeting, Sánchez's government pushed through the first stage of a new state secrets law – legislation that would hand the executive power to decide what constitutes an official secret. The move raised eyebrows across Madrid, with critics condemning the new bill as a move to shield the prime minister and his inner circle from judicial and public accountability. Further reports on the corruption probe are expected before the end of summer. Even within Sánchez's ranks, unease is growing, as Defence Minister Margarita Robles reportedly refused to uphold the law. The handling of state secrets, until now overseen by the national intelligence centre under her ministry, will now fall under the ministry of the presidency, justice, and relations with the courts. The defence ministry did not respond to Euractiv's request for comments. The Dominican connection The new law could also hinder ongoing investigations tied to the prime minister, particularly the hundreds of undisclosed, taxpayer-funded flights that have drawn increasing scrutiny as part of the broader PSOE corruption scandal. Sanchez has taken 582 flights in five years, according to an investigation published by El Mundo, more than any of his predecessors. But one destination stood out. Among hundreds of flights, 63 official flights were to the Dominican Republic, as first reported by Spanish outlet The Objective. The country appears central to the probe into the alleged network of kickbacks, rigged tenders, and influence peddling surrounding ex-Transport Minister, José Luis Ábalos. Testimony from businessman Víctor de Aldama – said to be a middleman linking private firms to government contracts – placed the Dominican Republic at the heart of the operation. Prosecutors claimed bribes paid to Aldama's Dominican business network were laundered and repatriated to Spain as cash, then distributed among officials tied to the plot. In April, witnesses testifying before the Spanish Supreme Court, admitted making cash payments in the Dominican Republic to =former advisor to ex-Transport Minister Ábalos -and key facilitator in the plot- Koldo García's, whose brother allegedly collected the cash following Aldama's orders. Public accountability Last year, Defence Minister Margarita Robles reported to the Senate, at the request of the main opposition Popular Party, that the Caribbean island's strategic position made it a crucial destination for layovers and technical stops. The, she said, was the reason behind the 62 trips – not 63, she noted. But to this day, the government has repeatedly refused to confirm the identity of the passengers of those flights, f uelling suspicions that the list could potentially include prosecuted officials in the kickback scheme. That wall of silence is starting to crack. A binding resolution published last Sunday by Spain's Transparency Council – following a request from media outlet El Debate – will force Sánchez to release full details of 122 flights taken in 2023 and 2024: including passenger names, destinations, dates and reasons for travel. Access to that information is of "great importance" as it "clearly and directly contributes to the control of public activity, the management of resources and the accountability to which the administration is bound," the report states. However, with the new official secrets law set to be approved by the Spanish parliament after the summer recess, critics claim the executive will be able to shield itself from further revelations, reports, and leaks crippling Sánchez's tarnished government. For now, the prime minister may be soaking up the sun in Lanzarote, but back in Madrid, the heat is only rising. (mm) Euractiv is part of the Trust Project

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store