In the wake of marathon and tough negotiations with tensions and recriminations, the Council and the European Parliament shook hands yesterday morning for the EU budget for 2027.
The two institutions had clashed over the size of the budget, with the Council calling for a knife and cuts and the European Parliament resisting and calling for increases in the fields of research, development and social policies.
As a result of the agreement, however, the EU budget for next year stands at €199.71 billion. in funding commitments and €211.5 billion. anticipated payments, including liabilities of previous years. In ten days (November 23-24), the final approval of the budget is expected, with interest now turning to the grand negotiation for the new seven-year budget 2028 – 2034.
In Cohesion, the lion's share
Social cohesion and agriculture continue to take up the bulk of the European budget. Indicative is the amount of funds for Cohesion and Resilience, which amounted to €75.76 billion, while the next largest fund of more than €57 billion. It is directed towards agricultural aid, natural resources and the environment.
Research, innovation and digital development are also emerging as key priorities for 2027 with more than €22 billion budgeted. This is followed by international actions with €15.54 billion, immigration with €5.81 billion. and security and defense with €3.08 billion.
However, the amount of expenditure for the operation of the European public administration, which amounts to €13.87 billion, is causing a sensation. and includes salaries and pensions of EU employees and operating expenses of the institutions.
A brawl over the cuts
The biggest front of the negotiations concerned the €1 billion cuts that member states were demanding from the European Commission. The Council's pursuit had provoked a reaction from the European Parliament, which called for the restoration of funds and additional funding of €1.17 billion. In the end, the European Parliament secured the restoration of the cuts and an additional €300 million for specific research, transport and energy networks and civil protection programmes.
The role of Hadjipantela
In the marathon negotiations, which lasted more than 24 hours, DISY MEP Michalis Hadjipantelas also played an active role, in his capacity as rapporteur of the European People's Party for the budget. In a statement, he points out that his intervention focused on securing resources for cybersecurity and the utilization of new technologies and artificial intelligence.
"Our responsibility," he notes, "is to ensure that Europe has the necessary means to meet its obligations both today and in the future."
The €9 billion noose
However, the rising cost of servicing the loan for the Recovery Fund continues to cause a headache. In 2027, it is estimated at €9.9 billion, with an additional burden of €4.9 billion. compared to the original planning.
The coverage will be done through available fiscal margins and special financial mechanisms. It should be noted that another €710.1 million remains available for unforeseen needs, in addition to the budget for 2027.
