The demand is sparking a clash between the Parliament and Ursula von der Leyen’s strict 1.26 per cent GNI spending cap - the budgetary mechanism that limits a government’s spending to a percentage of its total Gross National Income. Net contributors like Germany and the Netherlands argue it’s already too high.
The Commission wants to fund new defence and AI priorities by streamlining existing funds. The Parliament insists that these needs mustn’t come at the expense of farmers or regional aid. Following a vote (370 to 201) on 28 April, Parliament demands a 10 per cent budget increase, seeking 1.27 per cent of GNI. This specifically excludes the massive costs of repaying pandemic debt, which MEPs argue should be accounted for separately to avoid "suffocating" future investment.
