The European Commission has presented a draft of the European Union’s 2028–2034 multiannual financial framework, proposing a record €2 trillion budget. If approved, it would become the largest financial package in the EU’s history. Poland is positioned as the top recipient, with an expected allocation of over €123 billion. Prime Minister Donald Tusk has welcomed the development, framing it as a recognition of Poland’s role within the EU and a success of his administration’s European policy. The budget outlines major funding for key policy areas, including over €450 billion to support competitiveness across the EU economy, more than €300 billion for agriculture, and €131 billion for defense and security—five times higher than in previous cycles. Additional allocations are planned for digitalization, energy transition, migration management, Erasmus+, and climate change initiatives. Poland is expected to benefit significantly in areas such as regional development, infrastructure upgrades, and the shift to cleaner energy sources. However, the budget also introduces a new financing structure for the EU itself. To support increased spending, the European Commission proposes expanding its own sources of revenue, including new levies that would bypass direct national parliamentary approval. These would include a carbon border adjustment mechanism (CBAM), a share of revenues from the emissions trading system (ETS), an e-waste fee, a common corporate tax on large multinationals (CORE), and higher excise duties on tobacco and nicotine products. Together, these measures are projected to generate over €40 billion annually. While these new funding mechanisms are presented as tools for advancing climate policy, health, and tax fairness, they also signal a shift toward greater fiscal centralization. For Poland, which is expected to receive the highest volume of funding, the implications are complex. The country’s heavy reliance on coal and gas could make it particularly vulnerable to the expanded ETS and CBAM, which will raise costs in sectors like steel, cement, and fertilizer. The CORE tax, though aimed at large companies, is likely to be passed on to consumers. Environmental and excise fees could further affect households and small businesses. These developments mark a growing role for the European Commission in shaping tax policy across member states. Critics argue this creates a parallel taxation structure within the EU, without direct citizen oversight or sufficient involvement of national legislatures. While shared investment is necessary for collective goals, the shift in fiscal authority has prompted concerns about democratic accountability and the ability of member states to maintain control over domestic economic policies. Although Poland stands to gain significantly from the proposed budget, it may also shoulder a disproportionate share of the associated fiscal burden. The introduction of conditionality mechanisms, new levies, and centralised spending priorities could reduce national flexibility and increase dependency on EU-defined frameworks. The Polish government may face growing pressure to advocate for limits on EU fiscal expansion and to ensure that funding remains tied to the principle of subsidiarity and national accountability. Source: WEI (Warsaw Enterprise Institute)