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

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.