European Commission proposes €200bn EU budget

The European Commission said it has proposed an annual EU budget of €199.7 billion for 2025.

“The budget will be complemented by an estimated €72 billion of disbursements under NextGenerationEU (the NGEU stimulus package),” said the Commission.

“This substantial financial envelope will support the EU in meeting its political priorities while integrating the changes agreed in the mid-term revision of the Multiannual Financial Framework (MFF) in February 2024.

“The draft budget 2025 directs funds to where they can make the greatest difference, in cooperation and in line with the needs of the EU Member States and our partners around the world to make Europe more resilient and fit for the future to the benefit of EU citizens and businesses.

“This will be done by fostering the green and digital transitions, by creating jobs while strengthening Europe’s strategic autonomy and global role.

“It will enable support to key critical technologies through the Strategic Technologies for Europe Platform (STEP).

“The draft budget 2025 will also provide – in line with the MFF mid-term revision – continued support for Syrian refugees in Türkiye and the wider region, the Southern Neighbourhood including the external dimension of migration, as well as the Western Balkans. Crucially, it will provide stable and predictable support to Ukraine.”

The Commission’s proposals include the following amounts to various EU priorities:

  • €53.8 billion for the Common Agricultural Policy and €0.9 billion for the European Maritime, Fisheries and Aquaculture Fund
  • €49.2 billion for regional development and cohesion to support economic, social and territorial cohesion, as well as infrastructure supporting the green transition and Union priority projects
  • €16.3 billion to support partners and interests in the world, of which, among others, €10.9 billion under the Neighbourhood, Development and International Cooperation Instrument — Global Europe (NDICI — Global Europe), €2.2 billion for the Instrument for Pre-Accession Assistance (IPA III) and €0.5 billion for the Growth Facility for the Western Balkans, as well as €1.9 billion for Humanitarian Aid (HUMA)
  • A further €4.3 billion will be available in grants under the Ukraine Facility complemented by €10.9billion in loans.
  • €13.5 billion for research and innovation, of which mainly €12.7 billion for Horizon Europe, the Union’s flagship research programme. The Draft Budget also includes the financing of the European Chips Act under Horizon Europe and through redeployment from other programmes
  • €11.8 billion for “resilience and values” of which, among others, €5.2 billion for the rising borrowing costs for NGEU, €4 billion Erasmus+ to create education and mobility opportunities for people, €352 million to support artists and creators around Europe, and €235 million to promote “justice, rights, and values”

The annual budget for 2025 will have to be formally adopted by the European Commission’s Budgetary Authority before the end of the year.

Johannes Hahn, Commissioner for Budget and Administration, said: “The EU budget continues to provide Europe with the means to tackle current and future challenges, notably by supporting the green and digital transitions and increasing the Union’s overall resilience.

“We have also been able to strengthen our position externally: the mid-term revision of the MFF was essential to enable our Union to respond to the consequences of Russia’s war of aggression in Ukraine on a stable footing, reinforce our capacity to respond to natural disasters and deliver answers to the global competition on key critical technologies.”