MEPs back 2027 budget priorities: social cohesion, competitiveness and security

The 2027 budget should play a key role in promoting cohesion, quality jobs and democracy

Additional investment requested in defence, critical infrastructure, housing, health care

EU budget a vital investment tool even as borrowing costs place it under pressure

On Thursday, MEPs in the Budgets Committee endorsed a draft report on Parliament’s 2027 EU budget priorities.

Amid profound geopolitical and institutional instability, mounting security threats, protectionist pressures, declining competitiveness, budgetary constraints and growing societal challenges, a predictable, robust, citizen-centred and investment-oriented EU budget is more essential than ever, according to a report adopted by the Committee on Budgets with 20 votes in favour, 6 against and 2 abstentions. MEPs say the EU budget must foster prosperity through competitiveness, strengthen economic, social and territorial cohesion, create and protect quality jobs, and enhance security and defence capabilities. They are also concerned that a very limited amount of funding remains to address emerging challenges in what will be the final annual budget under the current 2021–2027 long-term budget (MFF).

Focus on labour shortage, housing and democracy

MEPs highlight cohesion policy as a key investment tool to boost competitiveness and want the 2027 budget to support critical infrastructure, including transport, digital and energy networks, particularly in less-developed EU regions. Tackling labour shortages, skills gaps and demographic pressures must also remain a priority. MEPs are asking for stronger, more resilient healthcare systems, with a particular focus on mental health. In light of the rising cost of living and the housing crisis, they are pushing for more support to be channelled through instruments such as the ESF+. The report also calls for increased funding for civil society organisations, independent media and investigative journalism, as well as stronger action against disinformation and gender-based violence.

Common investments to tackle strategic challenges

MEPs reaffirm the EU’s commitment to climate neutrality by 2050 and want the 2027 budget to accelerate investment in energy efficiency, the circular economy, biodiversity and digital innovation. They stress the need to help close the estimated €660 billion annual energy investment gap and to ensure sufficient funding for the EU’s LIFE programme. The report also calls for adequate support for farmers and the fisheries sector, and for reinforcement of the ability of the EU Civil Protection Mechanism and rescEU to respond swiftly to crises. MEPs stress that effective asylum, migration and border management policies are essential for safeguarding the EU’s external borders and preserving free movement, and require adequate funding, particularly for EU countries with external borders. MEPs also underline the urgency of strengthening Europe’s security and defence capabilities, including common investment in research, dual-use technologies and military mobility, as well as support for member states bordering Ukraine, Russia, or Belarus.

Neighbourhood and common external policy

In response to shifts in US policy, Russia’s war against Ukraine and growing global instability, MEPs support the need for stronger EU external action and increased funding for development and humanitarian assistance. They highlight the role of the Eastern and Southern Partnerships in promoting stability and prosperity in neighbouring regions, thereby enhancing Europe’s own security, and call for reinforced funding. MEPs also stress the benefits of pre-accession support and remind member states of their agreement to provide Ukraine with a €90 billion loan.

New own resources are essential to repay borrowing

MEPs are deeply concerned about rising borrowing costs linked to the EU’s recovery instrument, NextGenerationEU. According to Commission forecasts, interest payments in 2027 could reach €10 billion, compared to original forecasts of €4.98 billion. The report recalls the joint commitment by EU institutions that these financing costs must not come at the expense of EU programmes. MEPs therefore stress the urgent need to secure sufficient new own resources to cover repayment obligations and meet growing investment needs.

Quote

“The EU budget is more than numbers, it is a tool to protect people and strengthen Europe. In the final year of this budget cycle, we must invest in quality jobs, affordable housing, innovation and strong public services, support Eastern border member states, and rethink how we spend EU funds to deliver real results for citizens,” general rapporteur for the 2027 budget, Nils Ušakovs (S&D, LV) said.

Next steps

The plenary vote is scheduled during the 9-12 March session. The Commission is expected to present its proposal for the 2027 budget in the summer. The budget needs to be agreed between the Council and the Parliament by the end of this year to come into effect for 2027.

Background

The annual budget lays down all the EU’s expenditure and revenue for one year within the limits set by the EU’s seven-year budget. The budget guidelines set out what Parliament expects the Commission to consider when drawing up its budget proposal.