France, July 16 -- The European Commission will kickstart two years of tense negotiations when it unveils its proposal Wednesday for the EU's long-term budget including funding reforms that risk renewed confrontation with farmers.

EU chief Ursula von der Leyen has to balance a growing list of priorities including bolstering the bloc's security, ramping up Europe's competitiveness to keep up with US and Chinese companies, countering climate change and paying debts due from 2028.

And all of this against a backdrop of soaring trade tensions with the European Union's biggest commercial partner, the United States.

The previous 2021-2027 budget was worth around €1.2 trillion and made up from national contributions - around one percent ...