Brussels, 19 June 2026 – Climate Action Network (CAN) Europe warns that the direction of the discussion at today’s European Council meeting on the next EU long-term budget risks leaving Europe without the much-needed investment capacity to strengthen its economy, making it resource-efficient and phasing out fossil fuels.
The European Commission’s proposal for the next Multiannual Financial Framework (MFF) already falls short of the scale of investment needed to deliver Europe’s climate, energy and industrial objectives. Attempts by Member States to further reduce the proposal would make it very difficult for the EU to address its investment gap and end its dependence on fossil fuels.
Chiara Martinelli, Director at CAN Europe, said:
“To put it simply, the current proposal is already insufficient, and cutting it further would undermine Europe’s capacity to reduce its dependencies that make our economy vulnerable. The next EU budget must match the scale of the challenge, and move us away from fossil fuels.”
CAN Europe calls for a substantially larger EU budget, including through new own resources and common borrowing if necessary, and strongly opposes the proposal from the European Council Presidency to reduce funding compared to the Commission’s proposal. In addition, the proposed 35% green mainstreaming target remains insufficient to drive the investments needed for a just transition away from fossil fuels and towards a resilient, climate-neutral and resource-efficient economy.
Olivier Vardakoulias, Economist at CAN Europe, said:
“The next EU budget should dedicate at least 50% of spending to climate, nature and resilience objectives. Europe cannot afford to underinvest in the very solutions that reduce energy bills, strengthen resilience and support European people and workers in the transition away from fossil fuels.”
The negotiating box also fails to heed the call of the European Parliament and more that 800 regions, local authorities, businesses and civil society organisations to ensure earmarked funding for LIFE. Worryingly, there are also threats to reduce the Global Europe heading, which provides dedicated funding for international cooperation.
Vardakoulias continues:
“LIFE has been one of the EU’s most successful tools for delivering climate and environmental action on the ground. It requires dedicated funding, not fragmentation. At the same time, Europe needs a strong Global Europe instrument to remain a credible international partner in an increasingly unstable world. Strong international collaboration and mutual support are in Europe’s own interest as the climate crisis is a global challenge that we cannot overcome alone.”
To finance the investments required, the European Union and the Member States must find new ways to fill in the gaps with new own resources and fair taxation measures that reduce pressure on national budgets while accelerating the energy transition. This includes a permanent tax on the colossal profits of the fossil fuel companies, further boosted by the US and Israeli war on Iran.
Chiara Martinelli said:
“In the end, the debate on new own resources is not just about numbers. It is about fairness, responsibility and the future of the European project. The question is simple: who pays for Europe? The answer to that question will shape the next decade of EU policy.”
The negotiations on the EU’s long-term budget for 2028-2034 are now entering a decisive phase. While the European Council is expected to provide strategic direction, substantial negotiations between Member States and with the European Parliament will continue throughout 2026, with an ambition to reach a final agreement expected by the end of the year.
ENDS
Notes to Editors
For more information and media requests:
Jani Savolainen, jani.savolainen@caneurope.org, +358 5046678331