Budget 2027: EU Parliament and member states reach budget compromise
Almost 200 billion euros are available for the coming year; Dispute over the financial framework for 2028 to 2034 remains unresolved.
Quick Look
- The EU Parliament and member states have agreed on the 2027 EU budget after nightly negotiations in Brussels.
- Almost 199.7 billion euros are available; the agreement still has to be confirmed as a formality.
- At the same time, the positions for the multiannual financial framework 2028 to 2034 are far apart.
AI-generated summary
Why It Matters
The EU budget for 2027 is the seventh and last under the Multiannual Financial Framework 2021 to 2027. The Community budget for this seven-year period is around 1.1 trillion euros and is largely derived from contributions from the member states. Germany is the largest net contributor and contributes almost a quarter of the funds.
After negotiations until the early morning, the EU Parliament and the member states agreed on the 2027 budget. In the dispute over the framework for 2028 to 2034, positions are still far apart.
The EU budget next year is expected to be almost 200 billion euros. Negotiators from the EU Parliament and the member states agreed in Brussels that a total of around 199.7 billion euros can be budgeted for 2027, as the EU countries announced after negotiations in Brussels until early this morning.
The agreement will ensure that the agreed policies and programs can be implemented in 2027. It secures the EU's ability to act in the face of ongoing crises and challenges, for example in Ukraine and the Middle East, it said. This budget also makes it possible to react to unforeseen developments. This year's EU budget is around 190 billion euros.
The agreement still has to be officially confirmed by the EU states and the European Parliament, but this is considered a formality.
The agreement is based on a proposal from the European Commission, which proposed a budget of 199.9 billion euros for the coming year. According to the Brussels authority, priorities should include the competitiveness of the international community, security and defense and support for Ukraine.
The plan for next year is the seventh and last within the framework of the so-called multiannual financial framework (MFF) for the period 2021 to 2027. The common budget for the seven years total amounts to around 1.1 trillion euros. It comes largely from contributions from the Member States. As the Union's largest net contributor, Germany contributes almost a quarter of the funds, but at the same time benefits greatly from the EU internal market.
A new multi-year budget from 2028 to 2034 is currently being debated in Brussels. The EU countries want to come to an agreement by the end of the year - but this is considered extremely ambitious, as the positions of the member states are still very far apart. A proposal worth 1.826 trillion euros for the seven-year period is currently on the table. Chancellor Friedrich Merz (CDU) rejects this as unacceptable and instead calls for cuts of several hundred billion.
What to Watch
AI outlook — possibilities, not facts
The agreement on the 2027 EU budget will be officially confirmed by the EU states and the European Parliament.
Very likely · Within days
EU countries will agree on the Multiannual Financial Framework 2028 to 2034 by the end of the year.
Possible · Within months
Open Questions
- When exactly will the agreement be officially confirmed by the EU states and the European Parliament?
- What specific cuts is Chancellor Friedrich Merz calling for in the 2028 to 2034 financial framework?
- What priorities does the 2027 EU budget set in detail for competitiveness, security and defense?
