diff --git a/components/decorations/EUFundingBadge.tsx b/components/decorations/EUFundingBadge.tsx
index 304360fd9..570092c3d 100644
--- a/components/decorations/EUFundingBadge.tsx
+++ b/components/decorations/EUFundingBadge.tsx
@@ -19,7 +19,7 @@ export function EUFundingBadge() {
       {/* Background Flag */}
       <div className="absolute inset-0 w-full h-full opacity-95">
         <Image
-          src="/assets/eu-flag.jpg"
+          src="/assets/eu-flag.webp"
           alt="European Union Background"
           fill
           className="object-cover object-top"
diff --git a/public/assets/eu-flag.webp b/public/assets/eu-flag.webp
new file mode 100644
index 000000000..ffa732a63
Binary files /dev/null and b/public/assets/eu-flag.webp differ