Flash Briefing: European Commission Publishes Proposed New EU Budget 2028-2034

Key points of note for EU cancer policy are:

A new European Competitiveness Fund (ECF) overseeing health funding

Total MFF Proposal from the Commission:  €2 trillion (1.26% of Europe’s GNI) – Of note, this amount is expressed in 2025 prices and factoring in a rise in inflation. Final allocated amount may vary.

Proposed allocation for the European Competitiveness Fund incorporating health: €410 billion euros, including Horizon Europe

Key objective for ECF: simplification and strategic consolidation

The European Commission proposes the creation of a European Competitiveness Fund (ECF), consolidating 14 existing instruments – including EU4Health - from the current Multiannual Financial Framework into a single, streamlined mechanism. This fund aims to enhance the Union’s strategic autonomy and global competitiveness. It will be structured in 4 policy windows that mirror the European Union’s key policy priorities:

• Clean Transition and Industrial Decarbonisation
• Digital Leadership
• Health, Biotech and Bioeconomy and Resilience (number to be inserted)
• Defence industry and space (number to be inserted)

A new 'Single Rulebook' will harmonise and simplify the rules across all EU funding programmes, aiming to significantly reduce the administrative burden for applicants and recipients.

In addition, the fund will introduce an 'EU Preference' mechanism to enhance strategic autonomy. This will help to ensure support for the ‘development and manufacturing of strategic technologies and sectors located in the Union’.

A Strategic Stakeholder Board will be established by the Commission to support the governance of the Fund. This will be appointed by the European Commission following an open call for nomination. The European Competitiveness Fund and the strategic Stakeholder Board will be informed in their work by an observatory on emerging technologies, which will also advise on areas of market failures and sub-optimal investment situations.

The Competitiveness Fund will oversee health funding programmes, with an emphasis on fostering innovation in biotechnology, medical technologies and resilient health systems, in Chapter V (‘support for health, biotech and bioeconomy’). The legislative proposal states that support for health, bioeconomy and biotech policy shall ‘follow a health-in-all policies approach, with a special emphasis on communicable and non-communicable diseases, including mental health, degenerative health, autism, cardiovascular diseases, cancer and other non-communicable diseases, including those related to pollution, and enhancing international health initiatives and cooperation’ (art. 40).

Horizon Europe remains as a self-standing programme

Proposed allocation for Horizon Europe: €175 billion euros

Horizon Europe will remain a self-standing programme but will be more strategically aligned with the European Competitiveness Fund (ECF). The proposed changes aim to better connect research and innovation to industrial needs and competitiveness goals. It will follow a four-pillar structure:

• A first pillar dedicated to excellent science;
• A second pillar focused on competitiveness and society that will comprise Health, Biotech, Agriculture and Bioeconomy; as well as EU missions.
• A third pillar on digital leadership;
• A fourth pillar on European research area.

Horizon Europe’s second pillar is including defence and space related research, marking a significant broadening of its scope in line with evolving strategic priorities.

Limited reference to cancer specifically, or inequalities

The current proposal contains limited explicit reference to cancer or to health inequalities, despite acknowledging a broad 'Health-in-All-Policies' approach (see point 1 above concerning the text of article 40 of the legal proposal).

Recognition of workforce skills and productivity challenges

The proposal recognises the growing workforce challenges across sectors, particularly in health. As part of the ‘Health-in-All-Policies' approach, investing in resilient health systems is linked to boosting workforce productivity, improving public health, and reducing labour shortages.

The Competitiveness Fund will support a coordinated strategy on skills, education, and training, tailored to meet the demands of critical sectors, including healthcare, clean tech, and AI. Targeted reskilling and upskilling efforts will aim to strengthen the health workforce, support innovation, and ensure systems can adapt to emerging needs (article 40.15). Simplified funding mechanisms will also help reduce administrative strain.

An EU-funding reform – introducing national plans

Proposed allocation for national plans: €865 billion euros

The European Commission is proposing a major change to how its biggest programmes are managed.

Under the new plan – inspired by the Covid-19 €650 billion recovery loan - the existing 540 programmes will be grouped into 27 national funding plans (National and Regional Partnership Plans), one per EU Member State. This will notably encompass the two largest spending programmes, i.e. the Common Agricultural Policy (CAP) and the Cohesion Fund.

EU capitals will be required to propose a national plan detailing their proposed reforms, investments, and actions. Funding will only be released once this plan is formally approved by both the European Commission and the Council.

Significant reorientation of funding towards Defence

Proposed allocation for defence policies: €131 billion euros from the European Competitiveness Fund

The proposal shifts significant funding toward defence and security, driven by rising geopolitical tensions and the current European Union focus on strengthening Europe’s strategic autonomy.

European Commission proposing own revenue from tobacco excise duty

A notable backdrop to the MFF proposal is the dawning reality that from 2028 until 2058, EU Member States will start repaying the debt incurred by the €650 billion Covid-19 recovery fund. In part as response, the Commission is investigating the potential for Member State agreement on new public health-oriented taxes, such as on tobacco, waste and carbon emissions, to help fund the MFF 2028-2034.

The European Commission’s proposal introduces 5 new own resources to fund the MFF, envisioned to generate €58.2 billion revenue per year, including a new Tobacco Excise Duty Own Resource (TEDOR) designed to generate €11.2 billion per year. 15% of the revenues based on the Member State-specific minimum rate for manufactured tobacco and tobacco related products will go to TEDOR.

The new Tobacco Excise Duty Own Resource (TEDOR) will be imposed on tobacco products and included in the final retail price. The amounts leveraged would both generate revenue and help to achieve EU’s health policy objectives.

ECO leadership quotes

Csaba Dégi, President of the European Cancer Organisation, said:

'On first glance at today’s proposals, I cannot hide my concern. New EU agendas on competitiveness and defence are clearly now to the fore. But the joint European fight against cancer launched by Europe’s Beating Cancer Plan and the EU Mission on Cancer must continue. Across this continent, nearly four million people are diagnosed with the disease every year, and some two million die from it. Thanks to landmark initiatives from Europe’s ambitious Beating Cancer Plan and the EU Mission on Cancer, we’re starting to see unprecedented progress in preventing, diagnosing, and treating cancer. But these efforts have only just begun. There's still so much more to do – so many more lives to save. This is not the time to turn back. ECO will be making this point loud and clear to decision-makers in the negotiations ahead.’

Isabel Rubio, Co-Chair of the Prevention, Early Detection and Screening Network, said:

'The proposal to include an own revenue from tobacco excise duty represents an important step forward in aligning EU fiscal instruments with public health priorities. Higher taxation on tobacco products is not only a powerful tool to reduce cancer risk, particularly among young people, but also a means to reinvest in prevention and early detection policies. We welcome the Commission’s initiative and express our full support.'

Luis Seijo, Co-Chair of the Prevention, Early Detection and Screening Network, said:

'Reducing tobacco consumption is one of the most effective ways to prevent lung cancer and other major causes of mortality in the EU such as COPD and cardiovascular disease. The introduction of a health-oriented tax such as TEDOR is a clear signal that the EU is serious about using fiscal policy to protect public health. We support this proposal and encourage its rapid adoption and future expansion.'

Elisabetta Zanon, CEO of the European Cancer Organisation, said:

‘Today’s EU budget proposal marks a significant shift in approach. Placing health funding under a competitiveness banner raises many questions. We will be examining the full set of proposals in greater detail over the summer, but already it is critical that missing gaps in the proposal are filled. This includes a commitment to refresh Europe’s Beating Cancer Plan and the EU Cancer Mission and a positive vision for long-term European cross-border cooperation on health and cancer.’

Engage with our campaign

As the EU adapts its priorities to reflect the geopolitical realities, it is vital that we do not lose sight of the ambitious social initiatives which improve the lives of Europeans. Flagship programmes such as the EU Cancer Mission and Europe’s Beating Cancer Plan need to be refreshed and adequately funded through the upcoming long-term EU budget.

The months of negotiations will be decisive. As the cancer community, we cannot afford to sit on the sidelines. It will therefore be of utmost importance to be active on all fronts during the negotiations. We will be reminding policymakers of the real potential of an EU with a strong shared vision on health, with Europe’s Beating Cancer Plan as the demonstration model.  

We start here. Get involved in that representation. Support the Larnaka Call.

Launched this month in Cyprus, by a cross-party coalition of Cypriot politicians, the Larnaka Call asks EU member states to renew the political mandate for pan-European cooperation in cancer policy and research as part of the EU budget.

Our goal is clear: secure the funding and political ambition needed for stronger EU action on cancer.

We invite you to stand with us by signing the Larnaka Call on behalf of your organisation or individually and help us ensure that cancer control remains a priority for Europe.