The European Commission has proposed setting the EU’s 2027 annual budget at nearly €200 billion in commitments.
The draft budget reflects the mid-term review of the EU’s 2021–2027 cohesion policy, under which member states are encouraged to redirect some funding towards newer priorities including competitiveness, defence, affordable housing, water resilience and the energy transition, the Commission informed on Wednesday.
It said the proposal continues funding for existing EU priorities, including support for Ukraine through the Ukraine Facility and a new Ukraine Support Loan.
The Commission linked the draft budget to recent developments including the global pandemic, an energy crisis and rising inflation, Russia’s war against Ukraine and wider geopolitical tensions.
The proposal also includes extra funding in 2027 — the first full year of implementation of the EU’s Pact on Migration and Asylum — via top-ups of €1.2 billion for the Asylum, Migration and Integration Fund and the Border Management and Visa Instrument.
Where the money would go
Under the Commission’s proposal, the largest commitment allocations would be €75.8 billion for “Cohesion, Resilience and Values” and €57.2 billion for “Natural Resources and Environment”, including €40.6 billion for market-related expenditure and direct payments.
The “Single Market, Innovation and Digital” category would receive €21.9 billion in commitments, while “Neighbourhood and the World” would be allocated €15.5 billion and “European Public Administration” €13.7 billion.
The proposal sets commitments of €5.8 billion for migration and border management and €3.1 billion for security and defence, and includes €1.15 billion for the Ukraine Support Loan.
The annual EU budget for 2027 must be adopted by the European Parliament and the Council before the end of 2026.
