EU Agrees €199.7 Billion Budget for 2027, Its Last Under the Current Spending Plan

The Council of the European Union and the European Parliament have secured agreement on the EU's annual budget for 2027, the seventh and final annual budget of the current multiannual financial framework for 2021-2027. The deal was reached in early-morning talks in Brussels on Wednesday.

The 2027 budget amounts to 199.7 billion euros in total commitments and 211.5 billion euros in total payments. A further 710.1 million euros has been kept available under the bloc's spending ceilings so the EU can react to unforeseen needs. The European Parliament and the Council now have 14 days to formally approve the agreement; the Council is expected to endorse it on November 23 and Parliament is due to vote in plenary on November 24.

Simon Harris, Ireland's Tanaiste and Minister for Finance, was the Council's chief negotiator for the budget, with Ireland currently holding the six-month presidency of the Council. "The budget for 2027 must strike the right balance: equipping the Union with the means to act decisively, respond to the needs of its citizens and invest in their future, while avoiding additional burden on national budgets and taxpayers," Harris said.

The largest shares go to cohesion, resilience and values at 75.8 billion euros in commitments, natural resources and environment at 57.1 billion euros, and the single market, innovation and digital at 22 billion euros. Security and defence stands at 3.1 billion euros, and the Ukraine support loan at 650 million euros.

Parliament secured top-ups for its priorities over the Commission's draft, including 21.5 million euros more for Horizon Europe, 22.5 million euros for the Connecting Europe Facility, 14 million euros for Erasmus+, 13.5 million euros for the Union Civil Protection Mechanism and RescEU, and 10 million euros for the LIFE environment programme.

The Council said the agreement safeguards the EU's ability to cope with ongoing crises and challenges, such as those in Ukraine and the Middle East, and to deal with unforeseen circumstances. The deal comes as Kyiv faces a large financing gap in 2027: European Commissioner for Economy Valdis Dombrovskis said on November 9 that Ukraine faced an additional 70 billion euro financing gap next year, with the EU considering 45 billion euros toward it.