Future-proofing the European Budget
Embedding future-oriented spending principles will enhance Europe’s financial sustainability and strategic autonomy.
Embedding future-oriented spending principles will enhance Europe’s financial sustainability and strategic autonomy.
The European Union faces unprecedented challenges—geopolitical instability, climate change, and digital transformation—that demand a restructured, future-oriented budget. ‘This ‘Future-proofing the European Budget’ publication by NEOS Lab examines the role of fiscal policy in fostering long-term economic growth through strategic public investments while distinguishing between productive and unproductive government spending. A key proposal is the adoption of the “Future Share” (Zukunftsquote), a metric for assessing the proportion of public spending dedicated to long-term investments in education, research and development (R&D), and green infrastructure. By applying this benchmark to the budget, the EU could shift toward more future-proof financial planning, ensuring the provision of European public goods and reinforcing resilience and competitiveness.
The publication explores the evolution of the EU budget, its current limitations, and necessary structural reforms ahead of the 2028–2034 Multiannual Financial Framework. It also highlights the importance of institutional reforms, improved fiscal coordination, and expanded borrowing mechanisms to enable the EU to address global challenges effectively. Embedding future-oriented spending principles will enhance Europe’s financial sustainability and strategic autonomy.
Lukas Sustala is political director of NEOS and head of the thinktank at the NEOS Lab, the party’s foundation. An economist and journalist by training he previously worked as editor and editor-in-chief for Austrian media companies and as deputy director for the liberal economic thinktank Agenda Austria.
NEOS Lab is the political academy of the liberal grass-roots movement NEOS, and an open laboratory for new politics. The main objective of NEOS Lab is to contribute to enhancing political education in Austria by providing a platform for knowledge exchange and liberal political thinking on the key challenges and pathways of democracies and welfare states in the 21st century. Particular emphasis is placed on the core topics of education, a more entrepreneurial Austria, sustainable welfare systems and democratic innovation. NEOS Lab conceives itself as a participatory interface between politics and society insofar as it mediates between experts with scientific and practical knowledge on diverse policy issues and interested citizens. A network of experts accompanies and supports the knowledge work of the diverse thematic groups and takes part in the think tank work of NEOS Lab. Additionally, NEOS Lab provides several services, such as political education and training, workshops and conferences and a rich portfolio of inter- and transdisciplinary research at the interface between science, politics, economy and society.