EU member states and the European Parliament have reached an agreement on the EU’s annual budget for 2027, worth €199.7 billion in spending commitments and €211.5 billion in payments.
It is the seventh and final annual budget under the EU’s current seven-year spending plan, known as the Multiannual Financial Framework (MFF) for 2021 – 2027, the Council of the EU said in a statement on Wednesday.
The budget includes €710.1 million kept available under the MFF spending ceilings so the EU can respond to “unforeseeable needs.”
Simon Harris, Ireland’s Tánaiste and Minister for Finance and the Council’s chief negotiator for the 2027 budget, said the budget “must strike the right balance” between giving the EU “the means to act decisively” and avoiding “additional burden on national budgets and taxpayers”.
Where the money is set to go
The largest budget headings by commitments include €75.8 billion for “cohesion, resilience and values” and €57.1 billion for “natural resources and environment”, the Council said.
Other allocations include €22.0 billion for “single market, innovation and digital”, €15.5 billion for “neighbourhood and the world”, and €13.9 billion for “European public administration.”
The agreed figures also include a €650 million line for a Ukraine support loan, along with €5.9 billion in “special instruments.”
The Council noted that “commitments” are legal promises to fund activities that can run over several years, while “payments” are the money actually paid out for commitments made in the current and previous years.
The European Parliament and the Council now have 14 days to formally approve the deal, with the Council expected to endorse it on 23 November.
