The European Commission's Annual EU Budget Conference 2026 on 2 July 2026 revealed sharp divergences on the next Multiannual Financial Framework (MFF), with participants staking out incompatible positions on budget size, own resources, flexibility, and competitiveness. Budget Commissioner Piotr Serafin framed the tension between a 'frugal' and 'modern' budget, warning that cutting new priorities may not save money. Defence Commissioner Andrius Kubilius pushed for raising the MFF to at least 2% of GDP, citing US budgetary history. Marc De Vos (Itinera Institute) dismissed 'percentage point fetishism' and called for a quantum leap in prioritisation. Atanas Pekanov (Bulgaria) backed a roughly 50% increase for pan-European public goods, while Guntram B. Wolff (Bruegel) dissented, noting net-payer states reject even the framing and criticising cuts to the Competitiveness Fund and Horizon. On own resources, MEP Danuše Nerudová argued the Council is blocked and proposed a digital levy, gambling tax, and crypto-assets tax, judging CORE distortive. Frank Engels (Union Investment) agreed CORE is distortive, preferring a VAT share. Nadia Calviño (EIB) urged leaders to 'bite the bullet' on new own resources. Nathalie Tocci (Johns Hopkins) warned that flexibility risks politicisation and dropping the 30% climate earmarking. On enlargement, Maida Gorčević (Montenegro) rejected phased membership, insisting on full equality. On competitiveness, Vasileios Tsianos (Neo Performance Materials) contrasted $10bn US rare-earth investment with €100m in Europe, calling for flexibility and speed. Hermann Hauser (Amadeus Capital Partners) argued Europe's problem is scale, not startups, backing the Scale Up Europe Fund. Lúcio Vinhas de Souza (BusinessEurope) challenged cuts to the Competitiveness Fund. On joint borrowing, Oya Celasun (IMF) called it economically sound, while Wolff warned of real costs and weakened discipline. The conference converged on leverage, joint procurement savings, and new own resources. Next steps: the Irish presidency aims to conclude MFF by year-end. Affected stakeholders include member states, candidate countries, EIB, EBRD, World Bank, pension funds, and industry.
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