European Parliament VP calls for increased industrial and defense budget

Javi López, Vice President of the European Parliament and member of the S&D group, has called for significant allocations toward industrial policy, defense, and security in the 2028-2034 Multiannual Financial Framework (MFF) budget.

López noted that the upcoming budget cycle faces challenges, including the need to repay Next Generation funds starting in 2027 and a lack of new revenue sources or increased member state contributions. He emphasized the importance of building a “network of medium powers” to protect European freedoms amidst a hostile global landscape involving Russia, China, and the United States.

Complementing these strategic goals, the European Commission is implementing practical solutions to maintain competitiveness. These include modernizing public administration through innovative procurement guidelines and creating exchange platforms to share best practices. Efforts are also being made to support small and medium-sized enterprises (SMEs) by facilitating their access to public contracts and fostering technological innovation.