The European Commission on Wednesday proposed a 2 trillion euro ($2.31 trillion) EU budget for 2028 to 2034, with a new emphasis on economic competitiveness and defence and plans to overhaul traditional spending on farming and regional development.

The European Union has proposed a budget of close to €2 trillion ($2.3 trillion) for its next seven year budget, as it seeks to fend off a range of challenges from rising global economic competition to increased defense demands.

"A comprehensive increase in the EU budget is unacceptable at a time when all member states are making considerable efforts to consolidate their national budgets," said Stefan Kornelius, spokesperson for Chancellor Friedrich Merz's government in Berlin late Wednesday. "We will therefore not be able to accept the Commission's proposal."