The Council of the EU and the European Parliament have reached an agreement on the European Union’s budget for 2027. It provides for €199.7 billion in commitments and €211.5 billion in payments. This will be the final annual budget under the 2021–2027 multiannual financial framework.
€710.1 million remains below the ceilings of the current financial framework. The funds may be used in unforeseen circumstances and to address new needs next year.
Which areas will receive the most funding
The largest share is allocated to “Cohesion, Resilience and Values” – €75.7649 billion in commitments and €81.8499 billion in payments. The heading includes policies on regional development, resilience and European values.
“Natural Resources and Environment” has been allocated €57.1134 billion in commitments and €61.2784 billion in payments. The single market, innovation and digital technologies will receive €22.0075 billion and €22.8505 billion, respectively.
The budget also provides for €5.8116 billion in commitments for migration and border management, as well as €3.0785 billion for security and defence. A €650 million loan has been earmarked to support Ukraine.
Negotiations concluded ahead of the deadline
The negotiations were led by Ireland, which holds the presidency of the Council of the EU. Ireland’s Finance Minister Simon Harris was the lead negotiator on behalf of the member states.
“This agreement provides certainty, supports the priorities that matter to people and leaves room to respond when new challenges arise,” Harris said, as quoted by Ireland’s public broadcaster RTÉ.
The agreement was reached through a conciliation procedure between the Council and the European Parliament. Before the agreement, the two institutions had differing positions on the size of the budget. The Council had called for €191.88 billion in commitments and €202.07 billion in payments, while the European Parliament proposed €194.05 billion in commitments and €203.27 billion in payments for the main budget headings.
Formal approval is still pending
The agreed text still has to be formally approved by the European Parliament and the Council within 14 days. The Council is expected to consider the agreement on 23 November, with its adoption requiring a qualified majority.
The budget procedure is taking place in parallel with negotiations on the next multiannual financial framework, which will cover the 2028–2034 period.
Sources: rte.ie, agenceurope.eu