The EU budget has long been constrained to approximately 1% of the bloc’s GDP, raising critical questions about its adequacy in addressing evolving policy priorities. In this episode of the EU Perspectives podcast series, MEP Tomáš Zdechovský (EPP), Zsolt Darvas from Bruegel, Melchior Szczepanik, head of the Brussels office of the Polish Institute of Foreign Affairs, and Andy Bounds, FT’s Brussels Correspondent, examine the structural limitations of the current budget, the growing demand for investment in defense, competitiveness, and the green transition, as well as the potential avenues for reform.