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.

Germany has rejected the European Commission’s €2 trillion ($2.3 trillion) budget proposal, hours after it was announced by European Commission President Ursula von der Leyen in Brussels.

The European Commission is proposing a record 2-trillion-euro budget for 2028-2034, boosting funds for Ukraine, defense, and foreign policy. But tough negotiations lie ahead as richer EU states balk at higher spending.