The European Parliament on Wednesday adopted its position on the EU’s 2027 budget, with 400 votes in favour, calling for €1.17bn in additional funding for selected priorities and seeking to reverse cuts proposed by member states.
The vote sets the stage for three weeks of negotiations between MEPs and national governments over the bloc’s spending priorities, as the EU faces competing demands for investment, security and debt repayment.
“The debt linked to NextGenerationEU has to be repaid, but it should not be repaid at the expense of programmes that are vitally important for students, researchers and young farmers,” Nils Ušakovs, Parliament’s general rapporteur for the 2027 EU budget, told journalists in the subsequent press briefing today.
The European Commission’s original draft envisages €200bn in commitments and €212bn in payments for 2027. Commitments are promises to finance projects and programmes, while payments represent money actually disbursed, including for projects agreed in previous years.
The Council of the EU, representing member states, proposed cutting €1bn from commitments and €500m from payments. Parliament’s Committee on Budgets wants to reverse those reductions and increase funding by a further €1.17bn above the Commission’s proposal.
The additional funding remains a negotiating demand, rather than approved spending.
Research, transport and education among priorities
Transport, research and the single market account for the largest proposed increase, at €376.7m. Parliament is also seeking €275.1m more for areas including health, Erasmus+ and civil protection.
Agriculture and the environment would receive an additional €182.5m, while €139m is proposed for external action and humanitarian aid. Migration and border management would get €72.9m more, with another €66.3m earmarked for defence-related priorities, including military mobility.
The proposals reflect Parliament’s effort to protect EU programmes while responding to pressure to strengthen European competitiveness and security.
“We need European institutions that are effective, secure, independent and accountable, with the capacity to fulfil their responsibilities and serve the European citizens we represent,” Michalis Hadjipantela, the rapporteur for the budget’s other institutional sections, added during the briefing.
Debt repayment adds to pressure on the budget
A central dispute concerns the cost of repaying borrowing linked to the EU’s post-pandemic recovery fund, NextGenerationEU.
Parliament’s budget committee argues that debt-related costs should not come at the expense of existing EU programmes. It is seeking alternative financing arrangements, including the use of amounts no longer required for previously committed spending.
“Parliament proposes covering 65 percent of the relevant repayment costs using money committed in previous years but ultimately left unused,” Ušakovs said. He further argued that this would “protect programmes from cuts while allowing the EU to retain savings as a reserve for future crises.”
The issue exposes a wider dilemma for the bloc: how to meet its financial obligations while maintaining funding for research, agriculture, infrastructure and other policies.
The final outcome will depend on whether Parliament can persuade member states to accept higher spending in its priority areas and agree on how debt-related costs should be covered.
Three weeks to reach a deal
The vote launches a 21-day conciliation period between Parliament and the Council. The first meeting is scheduled for 3 November, with the period due to end on 16 November.
Both institutions must approve the resulting agreement under the EU budget procedure. If conciliation fails, the Commission must submit a new draft.
“We must now defend our priorities at conciliation, engage constructively and work towards an agreement that preserves the essential needs of our institutions while maintaining sound financial management,” Hadjipantela concluded.
Wednesday’s vote therefore marks the beginning, rather than the end, of the battle over next year’s EU spending. The negotiations will determine how much of Parliament’s proposed increases survive and which priorities ultimately receive the money.
[INSERT FINAL QUOTE FROM EITHER RAPPORTEUR ON THE PROSPECTS FOR A DEAL]
(Sources: European Parliament Research Service)
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