European Parliament

11/27/2024 | Press release | Distributed by Public on 11/27/2024 05:50

EU budget 2025: restoring Council’s cuts, reinforcing key EU programmes and managing borrowing costs

  • Next year's EU budget signed into law by European Parliament's President Metsola
  • Over €230 million added for key programmes aimed at improving people's lives, boosting competitiveness, and addressing current challenges
  • Total budget for 2025 is €199.4 billion in commitments, payments are set at €155.21 billion
  • The 2025 budget will be 6% larger than this year's, meaning a €10 billion increase

For the EU' 2025 budget, MEPs secured more effective support to address challenges such as health, humanitarian aid, border management and climate action

In a deal with member states reached on Saturday, 16 November, Parliament managed to defend an ambitious EU budget for next year, making sure it addresses current challenges and improves citizens' lives.

First annual budget following the revision of the EU's long-term financial framework

In February 2024, during the revision of the EU's long-term budget, Parliament secured substantial increases for key priorities, such as support for Ukraine, additions which MEPs were able to maintain for 2025's budget. They also ensured the financing of the repayment costs for the European Recovery Instrument (EURI), which are almost twice the amount initially forecast for 2025, while at the same time protecting funding for essential programmes like Erasmus+ or research.

Parliament secured additional funding for EU programmes

MEPs also obtained further funding for essential programmes in the 2025 annual budget. They successfully negotiated an additional €230.7 million beyond the Commission's initial draft proposal, focusing on key initiatives including research, health, education, young farmers, coordination of social security schemes, crisis response to natural disasters, climate action, humanitarian aid, military mobility and border management. On top of this extra funding, major increases sourced from previous savings will benefit the 2025 budget, including €422 million for Erasmus+ and €20 million for Horizon Europe.

Find the details of the deal

The 2025 budget was adopted with 418 votes to 185 and 67 abstentions. Council already endorsed the deal on 25 November.


Quotes

Johan Van Overtveldt (ECR, BE), Chair of the Committee on Budgets, said:

"This budget addresses urgent challenges including Russian aggression in its war against Ukraine, ongoing migration pressures, the escalating crisis in the Middle East, the impact of natural disasters, and crucially the competitiveness of our economies. This will ensure the EU can respond effectively to these pressing realities." (Watch the full plenary speech)

Victor Negrescu (S&D, RO), general rapporteur for the EU budget 2025 (for section III - Commission), said: "At almost €200 billion, the 2025 EU Budget is 6% larger than the 2024 Budget, representing a €10 billion increase that will allow to respond to the needs of Europeans while paying back the Union's post-pandemic economic recovery without cutting key programmes. By approving our EU budget for next year, we are sending a strong message to EU citizens that despite the difficult political and economic context, the EU is able to equip itself with the financial means necessary to implement its policies and respond to people's needs." (Watch the full plenary speech)

Niclas Herbst (EPP, DE), rapporteur for the other sections, said: "The EU budget for 2025 is a forward-looking achievement for the remaining years of the Multiannual Financial Framework (MFF 2021-2027). I can confirm that we successfully defended Parliament's key priorities, enhancing cybersecurity and advancing the use of Artificial Intelligence in the EU institutions. This agreement demonstrates our commitment and responsibility towards our citizens." (Watch the full plenary speech)

Background

Over 90% of the EU budget funds activities in EU countries and beyond, benefiting citizens, regions, farmers, researchers, students, NGOs, and businesses. Unlike national budgets, the EU budget is primarily aimed at investment, to generate growth and opportunities across the European Union. The EU serves 27 countries with a total population of 450 million. Given this scope, the annual EU budget is relatively small - on average €160-180 billion annually in 2021-27. This is comparable to the national budget of Denmark, which serves 5.6 million people, and is about 30% smaller than the budget of Poland, for a population of 38 million. (Source: Commission)

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