Stable funding for the priorities set out in the 2027 annual budget

The European Commission has proposed that the EU’s annual budget for 2027 be set at €200 billion (in commitment appropriations).

The draft budget also takes into account the conclusions of the mid-term review of cohesion policy for 2021–2027. Member States are encouraged to use these resources for the Union’s new priorities in the areas of competitiveness, defence, affordable housing, water resilience and the energy transition, by offering the opportunity for one-off pre-financing and increased EU co-financing for these priorities.

The draft budget for 2027 follows a series of crucial events in recent years, such as a global pandemic, an energy crisis and rising inflation, the return of war to the European continent and the worsening of geopolitical tensions. Once again, the crisis in the Middle East has affected a wide range of economic sectors in recent months due to rising energy prices, which has led to more volatile prospects for economic growth and inflation in Europe.

Next year’s budget will continue to provide crucial funding for the EU’s established policy priorities, including significant support for Ukraine through the Ukraine Facility and the new Ukraine Support Loan.

Russia’s war of aggression against Ukraine has highlighted the need for major investments in security and defence across Member States to enhance Europe’s future security. Next year’s budget reflects the Union’s increasingly important role in strengthening Europe’s security and defence preparedness, as well as in supporting investment in defence research, industrial capacity, military mobility and strategic resilience. It also contributes to the implementation of the Re-Arming Europe / Preparedness 2030 Plan and is complemented by the ‘Security for Europe’ (SAFE) instrument, which supports joint defence procurement and investment by Member States.

Economic security and a strong, competitive economy are central priorities for the Union. The 2027 draft budget therefore provides for increased funding for flagship programmes such as Erasmus, the Connecting Europe Facility and the Single Market Programme, whilst continuing to support agriculture, not only to safeguard the Union’s food security, but also to promote economic stability and the development of rural areas.

Additional funding will be made available to Member States in the first year of implementation of the Pact on Migration and Asylum, through top-ups from the mid-term review of the multiannual financial framework (an additional €1.2 billion in 2027) for the Asylum, Migration and Integration Fund (AMIF) and the Border Management and Visa Instrument.

Next steps

The annual budget for 2027 must be formally adopted by the European Parliament and the Council before the end of 2026.

Background

The draft EU budget for 2027 covers expenditure covered by appropriations within the long-term budgetary ceilings, financed by own resources. Two figures are proposed in the draft budget for each programme: commitment appropriations and payment appropriations. ‘Commitment appropriations’ refer to funding that can be committed to contracts in a given year, and ‘payment appropriations’ refer to money actually disbursed. All amounts are expressed at current prices.

The EU’s draft budget for 2027 is the last under the current multiannual financial framework (MFF). It will ensure the funding of key EU programmes in the run-up to the next adoption of the long-term budget, the MFF 2028–2034.

More information: European Commission.