The EU Commission unveiled its post-Brexit budget proposals on Wednesday, saying it plans to spent £1.13trillion over seven years.

The budget sets total spending at around 1.11 per cent of EU gross national income, up from 1 per cent previously, and will result in a hike in payments for the remaining 27 members.

Germany, the largest contributor to EU coffers, had said it will have to pay an additional £10billion per year if the plans go ahead.

Jean-Claude Juncker announced EU budget proposals on Wednesday, saying spending would increase to £1.13trillion between 2021 and 2027

Had Britain remained a member of the Union, it would also have been expected to contribute to any rise.

Jean-Claude Juncker told the EU Commission on Wednesday that the new budget would prioritise defence, border control and the digital economy.

Funding for agriculture and development projects in poorer countries, formerly some of the EU's biggest expenses, would be cut by around 6 per cent.

Diplomats said the new budget would likely see a shift in spending from poorer, less-developed eastern countries to southern states, which have borne the brunt of the migrant crisis.

Detailed spending criteria will be published later this month.

The criteria for distributing funds will also be strengthened to include abiding by the rule of law and committing to economic reform, Juncker said.

That could spell trouble for countries such as Poland and Hungary, where independent courts are being threatened by government reforms.

Additional funds would be used on defence and border control, Juncker said, likely seeing a shift of cash from eastern to southern Europe, which has borne the brunt of the migrant crisis

The EU has repeatedly threatened to sanction Polish President Andrzej Duda and Hungarian Prime Minister Victor Orban over their reforms.

In a press release, the EU said the budget was 'an honest response to today's reality in which Europe is expected to play a greater role in providing security and stability in an unstable world, at a time when Brexit will leave a sizeable gap in our budget.'

Announcing the plans, Mr Juncker said: 'The new budget is an opportunity to shape our future as a new, ambitious Union of 27 bound together by solidarity.

'With today's proposal we have put forward a pragmatic plan for how to do more with less.'

Wednesday's announcement will spark rounds of negotiations which are likely to take months.

In a joint statement, German Foreign Minister Heiko Maas and Finance Minister Olaf Scholz noted that the proposal would 'considerably increase' the financial burden on Germany.

'We are willing to fulfill our responsibilities for strengthening the European Union but this also requires a fair burden-sharing of all member states,' the pair said.

They added that Germany will push to 'sustainably strengthen the European Union's capability for action' and enforce a 'fundamental modernization' of EU spending.

Among other priorities, Germany is looking for better protection for the EU's external borders and increased cooperation in joint defense policy.