The EU has been criticised for wasting money
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The European Commission wants to boost spending between 2007 and 2013, a move that is likely to prove unpopular with some of the EU's biggest members.
The EU's executive arm plans to lift spending over that period to more than 900bn euros (£601bn; $1.1 trillion).
The EU's six largest members, including France, the UK and Germany, last year called for cap on spending.
EC president Roman Prodi, however, said that more money was needed after the trade bloc admitted 10 new members.
The new members are mostly from eastern Europe and the Baltic area, and include Poland, Hungary, the Czech Republic, Lithuania, Latvia and Estonia.
Under the new plan, the EU's 25 member states would each contribute an average 1.14% of gross national income to the budget.
That is more than 1% limit proposed by the EU's main players back in December.
Mr Prodi, who said that capping spending at those levels was not viable, is set to face stiff opposition.
The announcement comes at a time when France and Germany are facing censure for not complying with budget deficit rules and the UK is fighting to retain its rebate worth billions of euros.