EU budget for 2025 to focus on research, health, education, and climate action

This article is brought to you in association with the European Parliament.

• head of negotiations with member states, MEPs propose an overall budget of almost €201 billion 
• First annual budget following the revision of the EU’s long-term financial framework 
• First annual budget with higher than foreseen Next Generation EU interest costs to be repaid 
• Growing repayment costs for the recovery plan must not reduce funding for essential programmes like Erasmus+ 

Parliament demands an EU budget for 2025 that focuses on improving people’s lives, boosting competitiveness, and addressing current challenges.

MEPs set the overall level of commitment appropriations for the 2025 draft budget at almost €201 billion, €1.24 billion more than the Commission’s proposal from last June. Parliament wants to boost programmes vital in addressing health challenges, supporting young people, agriculture and rural areas, helping people suffering from natural disasters, boosting climate action, managing migration and security needs, and strengthening EU support for neighbouring regions experiencing geopolitical and humanitarian crises. MEPs restored €1.52  billion in funding cuts proposed by the Council, and set payment appropriations at €153.5 billion.

Repayment costs for the European Recovery Instrument (EURI)

The EURI repayment costs, which are twice the amount initially forecast for 2025, should not result in reduced funding for essential programmes, like Erasmus+ or R&D, according to Parliament. MEPs want to reverse cuts made by member states to appropriations dedicated to these areas and to use the new “EURI cascade mechanism” introduced by the revision of the EU’s long-term budget . This mechanism is designed to manage escalating Next Generation EU borrowing costs without affecting key initiatives, maintaining the budget’s flexibility and response capacity.

Quotes

Victor Negrescu (S&D, Romania), general rapporteur for the EU budget 2025 (for section III – Commission), said: “Today’s vote is a strong signal of support for a citizen-centred EU budget focused on investments in economic development and improving people’s lives. That is why we are asking for an increase of €110 million for actions in the area of health, an additional €70 million for Erasmus, €42 million to protect our citizens against the effects of natural disasters, an additional €96 million for agriculture, €120 million for humanitarian aid, and €110 million for the Eastern and Southern Neighbourhood.”

Niclas Herbst (EPP, Germany), rapporteur for the other sections, said: “Cybersecurity is vital for EU institutions and has remained a pressing concern since 2023. Another key priority is ensuring that the institutions have enough staff to fulfil new tasks, like for the implementation of the Artificial Intelligence Act. Additionally, improving the security of European External Action Service buildings, particularly in delegations situated in remote and high-risk areas, is essential. To address this, an increase of €37 million is required.”

Next steps

The vote initiates three weeks of “conciliation” talks with the Council, with the aim of reaching a deal for next year’s budget, which then has to be voted on by Parliament and signed by its President.

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. With these figures in mind, the annual EU budget is actually 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, which serves 38 million people. (Source: Commission)