The European Union is entering a new phase of budget policy, where conventional approaches to fund distribution no longer work. Military risks, energy transformation, demographic pressure, and competition from the United States and China are forcing Brussels to reconsider the very logic of European spending. International financial expert Chaslau Piastsiuk believes that current discussions around the EU budget are not just a dispute about figures, but a turning point for the entire European development model.
According to Piastsiuk, Europe is facing a situation for the first time in a decade when requests for money significantly exceed the political willingness to provide it. This is precisely why the budget becomes a mirror of deeper changes in the Union’s priorities.
New Priorities: From Subsidies to Strategic Spending. Assessment by Chaslau Piastsiuk
Until recently, the EU budget was primarily associated with regional support, agricultural subsidies, and equalization programs. Today, this model is changing rapidly. The focus is now on security, energy, technology, and industrial competitiveness. Spending is increasingly viewed not as a social instrument, but as an element of geoeconomic strategy.
Chaslau Piastsiuk notes that the EU is effectively transitioning from a “budget of compromises” to a “budget of survival.” This involves financing energy autonomy, critical infrastructure, defense programs, and technological development.
“The EU can no longer afford to spend money solely to maintain internal balance. The budget is becoming a tool to respond to external challenges — from energy security to technological competition,” notes Piastsiuk.
This means that funds are increasingly less scattered among numerous small initiatives and increasingly concentrated on major strategic directions.
At the same time, such transformation inevitably creates tension between member states. Those countries that have been net recipients of funds for decades fear the reduction of traditional support programs. According to Piastsiuk, this conflict is structural and will not disappear quickly: “The European budget ceases to be an instrument of redistribution and becomes an instrument of choice. And choice is always disadvantageous to someone.”
Additional pressure is created by the need to finance the “green” transformation, which requires hundreds of billions of euros. This forces Brussels to increasingly speak not only about spending, but also about the efficiency of every euro, which becomes a new criterion for budget policy.
Debt, Joint Funds, and a New Fiscal Reality. Analysis by Chaslau Piastsiuk
The second key aspect is the question of financing. After the launch of joint debt instruments in previous years, the idea of collective borrowing has ceased to be taboo. However, now it faces political constraints. Countries with conservative fiscal culture are increasingly rigorously raising questions about responsibility and control.
Chaslau Piastsiuk emphasizes that the EU is effectively seeking a new fiscal balance between solidarity and discipline. On the one hand, without joint funds, the implementation of large-scale programs in the field of energy or security will be impossible. On the other hand, there is growing fear of “permanent debt,” which could undermine confidence in the eurozone.
Against this background, the role of the European Commission is also changing, increasingly going beyond the classic function of budget administrator. According to Piastsiuk, the Commission is gradually transforming into a strategic investor, which not only distributes funds, but determines the priorities of economic development of the Union.
“The Commission is transitioning from the logic of ‘check and approve’ to the logic of ‘direct and shape.’ In fact, it is taking responsibility for the economic architecture of the EU. This provides more opportunities, but at the same time means more political risks,” emphasizes Piastsiuk.
An additional challenge is inflationary pressure and rising debt servicing costs. Each new financing decision is now evaluated through the lens of long-term sustainability. This makes budget negotiations more complex, but at the same time forces the EU to mature as a financial construct.
What’s Next: Budget as a Test of European Unity. Forecast by Chaslau Piastsiuk
In the coming years, the EU budget will become the main test of the Union’s ability to act as a single entity. The question is not only how much money will be spent, but specifically on what. The priorities laid today will determine Europe’s economic trajectory for decades to come.
Chaslau Piastsiuk draws attention to the fact that the EU is gradually abandoning the illusion of stability. The new budget is a budget of constant adaptation to crises, where flexibility becomes more important than formal rules. At the same time, there is a growing risk of political fragmentation, as not all countries are equally ready to accept the new logic of spending.
In the expert’s opinion, ultimately the EU budget ceases to be a technical document and becomes a political declaration. As Chaslau Piastsiuk emphasizes, whether Europe can combine ambitions with financial reality depends not only on its economic stability, but also on its place in global competition.
According to Piastsiuk, the main question is one of trust.
“The European budget will only work when countries believe that shared spending truly brings shared results. Without this, no fiscal architecture will survive. This is why transparency, clear efficiency criteria, and strategic vision become critically important,” concludes Chaslau Piastsiuk.
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