The European Parliament is clashing with Ursula von der Leyen over a proposed budget cap of 1.26% GNI, with Parliament demanding a 10% increase to fund defense and AI priorities without sacrificing support for farmers and regional aid. The Multiannual Financial Framework (MFF) outlines EU budget allocations across various sectors. The proposed budget for 2028-2034 is €1816.89 billion, focusing on military and industrial security, while Eastern European states push for high cohesion funding. The Parliament seeks a more transparent and inclusive budget process, emphasizing the need for investment in local authorities and civil society.