On 2 July 2026, Budget Commissioner Piotr Serafin opened the Annual EU Budget Conference by arguing that the EU budget should be judged not only by its size but by its impact, calling for a reorientation toward European public goods and greater use of financial leverage. Serafin stressed that the debate should focus on 'what' and 'how' the EU spends, rather than solely on 'how much', as the Multiannual Financial Framework (MFF) negotiations continue.
Serafin defended traditional policies such as cohesion policy and the Common Agricultural Policy, but argued that new priorities — defence, energy security, space, transport, and R&D — require a more 'modern' budget. He warned that a frugal budget risked cutting these new priorities first, and that national spending would not necessarily be cheaper than joint EU spending, citing duplication and lost economies of scale. The Commissioner highlighted EU programmes like Galileo, Copernicus, and Horizon Europe as examples where joint action delivers greater value than 27 separate national efforts.
On the 'how' of spending, Serafin advocated for leveraging EU funds to attract private investment, building on the model of the Juncker Plan. He noted that grants remain essential where market incentives are insufficient, but argued that instruments such as guarantees and blending can multiply the impact of public money. He linked this approach to the Savings and Investment Union, saying the EU budget can play a catalytic role in channelling private capital toward strategic areas like innovative start-ups and new technologies.
Serafin also highlighted the role of joint borrowing, which began with SURE and NextGenerationEU and has expanded to include SAFE and support loans to Ukraine. He noted that Defence Commissioner Andrius Kubilius had seen defence spending rise from €1.5 billion to €150 billion through borrowing on financial markets. Describing EU bonds as offering attractive yield, deep market liquidity, protection against country risk, and triple-A ratings, Serafin argued that they provide good value for investors and enable the EU budget to support large-scale investments.
The speech contained no new concrete proposals or numerical targets, instead offering a broad policy orientation favouring a shift toward joint EU spending on public goods and increased use of financial leverage. Serafin's remarks come as the Commission's MFF proposal is under discussion, with member states divided over the overall size and priorities of the next long-term budget.
For EU taxpayers, a more leveraged budget could mean lower direct contributions if joint spending reduces duplication, but also potential exposure to higher EU borrowing. EU businesses, especially in defence, energy, and R&D sectors, stand to benefit from increased EU investment and access to blended finance. National governments face a trade-off between retaining control over spending and gaining efficiency through pooled resources. Private investors gain new opportunities to co-finance EU projects, but may face competition for yields from EU bonds.