2027 EU budget deal: EP boosts research, energy networks and civil protection

Provisional deal between Parliament and Council reached

€300 million added for key EU priorities

Overall budget for next year set at €199.7 billion

Deal still to be formally endorsed by Council and Parliament

MEPs achieved increases for the 2027 EU budget and secured funds for key EU programmes such as Horizon Europe, Erasmus+, civil protection and neighbourhood policy.

On Wednesday morning, negotiators from the European Parliament and the Council reached a provisional agreement on the 2027 EU Budget. They agreed to set the overall level of commitment appropriations for 2027 (legal promises to pay in the same year or later) at €199.7 billion, and payment appropriations (actual payments made to beneficiaries) at €211.5 billion.

Parliament secured additional funding

The provisional agreement restores Council’s cuts of €1 billion in commitments to the levels originally proposed by the Commission on commitment appropriations. Parliament successfully negotiated an additional €300 million in funding beyond the Commission's proposal, boosting policies such as Horizon Europe, transport and energy networks, Erasmus+, civil protection, neighbourhood policy and humanitarian aid. Parliament also secured strengthening the EU institutions’ cybersecurity and security capabilities, including in EU delegations, to protect staff and ensure secure communications. Detailed figures will be available in due course.

Research, infrastructure, education, and civil protection

To reinforce European competitiveness, innovation and cross-border connectivity, MEPs managed to increase funding for Horizon Europe by €21.5 million, transport and energy networks by €22.5 million, and Erasmus+ by €14 million. MEPs increased funding for the European Agricultural Guarantee Fund by €7 million, and the EU’s environment and climate action instrument, the LIFE programme will receive an additional €10 million in funding. To strengthen the EU’s capacity to respond to natural disasters and other emergencies, they increased funding for the Civil Protection Mechanism by €13.5 million.

Border management, EU’s neighbourhood and the world

To reinforce the EU’s capacity to manage migration and protect its external borders, MEPs increased funding for the Asylum, Migration and Integration Fund and the Border Management and Visa Instrument by €30 million. They also managed to increase funding for military mobility by 10 million. MEPs boosted funding for the Southern Neighbourhood and the Eastern Neighbourhood by €39 million and secured an additional €30 million for humanitarian aid.

Repayment costs for the NextGenerationEU (NGEU) and the Ukraine Support Loan

While the Parliament and Council did not mobilise the Ukraine Support Loan special instrument, they committed in a joint statement that the mobilisation of the instrument remains possible in 2027 should unforeseen and exceptional circumstances emerge. The €4.9 billion NGEU overrun costs are dealt with as agreed previously in the “cascade mechanism”, designed to manage the borrowing costs and to protect flagship programmes.

Quotes

“As citizens’ needs and priorities continue to change, the European Parliament and EU institutions must remain focused on delivering tangible results for European citizens and addressing the challenges facing the Union. From strengthening security and defence to investing in research, innovation and education, EU funding plays a vital role in building a more resilient and competitive Europe. While the current budget provides an important foundation, further action will be essential to reinforce Europe’s competitiveness, security and long-term prosperity,” chair of the Committee on Budgets, Johan Van Overtveldt (ECR, BE) said.

“Thanks to Parliament’s united and strong position, we have managed to secure important additional resources for key EU programmes and citizens. Parliament has fought for these increases because the current long-term budget has already lost 10% of its purchasing power due to inflation since its adoption. Beneficiaries of EU funding deserve predictability and the resources the EU committed to providing at the start of this budget cycle. Parliament remains committed to ensuring that the EU’s growing debt repayment obligations do not come at the expense of crucial EU programmes that underpin European citizens’ priorities,” general rapporteur for the EU’s 2027 budget (for section III - Commission), Nils Ušakovs (S&D, LV) said.

“We managed to secure additional funding for cybersecurity, the physical security of EU delegations, and new technologies including AI. These are essential investments. Parliament also defended the resources needed to ensure its proper functioning. While EU institutions must make significant efforts to improve efficiency, they must also have sufficient capacity to carry out the tasks assigned to them for the benefit of EU citizens,” rapporteur for the other sections, Michalis Hajipantela (EPP, CY) said.

Next steps

Once the Council formally adopts the compromise, it will be discussed in the Committee on Budgets on 19 November, then voted on in plenary in the European Parliament (during the November session in Strasbourg) and signed into law by its President.

Background

More than 93% of the EU budget goes directly to EU programmes. The annual EU budget, which serves 27 countries and 450 million Europeans, is relatively small – on average €160-200 billion annually during 2021-27. This is comparable to the national budget of Poland, which serves 39 million people, and equivalent to 30% of the budget of Germany, which serves 84 million people. The EU budget delivers significant economic, social and political benefits despite representing just over 1% of the EU’s gross national income (GNI). (Source: Parliament and Commission)