EU 2026 budget: focus on supporting competitiveness, preparedness and defence

Restore funding to key programmes cut by EU governments

Increase support for researchers, civil protection and young farmers

MEPs add €523 million to the draft 2026 budget as proposed by the Commission

Plenary to confirm position later in October, negotiations with Council to start at the end of October

MEPs want a 2026 EU budget that strengthens competitiveness and innovation, enhances resilience in the agricultural sector, underpins preparedness and bolsters EU defence.

On Monday evening, the Budgets Committee adopted its position on the 2026 EU budget. It voted to restore to Commission-proposed levels €1.3 billion in commitment appropriations for key programmes cut by EU governments.

The MEPs also backed increases to help Europeans cope with current economic pressures and geopolitical realities. They called for reinforced funding for research and innovation through Horizon Europe, stronger preparedness and emergency response capacities, and targeted support for farmers, with a focus on young farmers. Budgets Committee MEPs also underlined the need to support effective border management and military mobility, and to do more to support the development of dual-use infrastructure, in frontline countries and in the EU’s southern and eastern neighbourhood in the current unstable geopolitical context.

Key increases, on top of the draft EU 2026 budget proposed by the Commission in June, include:

Research and innovation

Horizon Europe: + €60 million

Transport and energy networks: + €80 million

Support for small and medium-sized enterprises: +€4 million

Health, education and youth

EU4Health: +€5 million

Erasmus+: +€5 million

Creative Europe: +€2.5 million

Citizens, Equality Rights and Values programme: + €2.5 million

European Social Fund Plus: +€2.5 million

Agriculture and environment

Young farmers: +€23 million

European Agricultural Guarantee Fund: +€30 million, wine sector +€15 million

LIFE programme: clean transition + €15 million, nature and biodiversity + €10 million

Civil Protection Mechanism: +€30 million

Migration, border management and security

Asylum, Migration and Integration Fund: +€10 million

Border Management and Visa Instrument: +€30 million

Military mobility: +€35 million

Neighbourhood and the world

Southern Neighbourhood: +€35 million

Eastern Neighbourhood: +€25 million

Humanitarian aid: +€50 million

More details can be found in the compromises on the various budgetary headings, all endorsed by the committee.

Repayment costs for the NextGenerationEU recovery package

The EU faces an unexpected €4.3 billion overrun in borrowing costs for NextGenerationEU in 2026, double the Commission’s forecast. MEPs emphasise that this should not reduce funding for essential programmes like Erasmus+ or EU4health, and restore the cuts made by member states to the amounts estimated by the Commission for these costs. MEPs insist on the proper use of an agreed cascade mechanism, designed to manage the reimbursement of escalating NextGenerationEU borrowing costs and to protect flagship programmes. MEPs also argue that the approximately €300 million in liquidity management costs, caused by delays in national recovery plan spending by EU countries, should be financed transparently and solely from decommitments, and not at the expense of key programmes.

Quotes

“Having worked through over a thousand amendments, we managed to come to a balanced approach regarding next year's budget that upholds the EU's commitments to citizens while respecting budgetary constraints. Our priorities are clear: to strengthen research, innovation, and competitiveness through Horizon Europe, Erasmus and other related programmes; to reinforce preparedness, health, and education; to ensure resilient agriculture and environmental sustainability; to reinforce defence policy through an increase for military mobility; and to restore unjustified cuts by the Council to safeguard the Union’s ambitions and credibility so we could provide security and prosperity to all Europeans,” general rapporteur for the EU’s 2026 budget (for section III - Commission), Andrzej Halicki (EPP, PL) said.

“The EU budget is under exceptional pressure, especially the financing of European institutions. We must ensure European institutions have the resources they need to carry out their work effectively. In the face of new challenges, from cyber-security to artificial intelligence, we cannot allow harmful cuts proposed by the Commission. My priority is to secure adequate funding so that for example courts, oversight bodies, and external services can work safe from cyber-attacks, and fulfil their mandates,” rapporteur for the other sections, Matjaž Nemec (S&D, SI) said.

Next steps

The Committee on Budgets will vote on a draft accompanying report on 13 October. Parliament will then vote on its position during the 20-23 October plenary session, launching three weeks of negotiations with the Council, which adopted its position in September, with a view to reaching an agreement on next year’s budget before the end of the year.