Budgets Committee sets out priorities for next long-term EU budget

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• Post-2027 budget must reflect current geopolitical, economic, and environmental realities and be flexible 
• Commission’s ‘single national plan’ approach cannot be the basis for spending in member states 
• Mega-funds merging existing programmes are not fit for purpose 
• Robust parliamentary accountability is needed to allocate and trace funds 

MEPs in the Budgets Committee have backed the first report outlining Parliament’s vision for the next long-term EU budget.

In the report adopted on Wednesday by 23 votes in favour, 9 against and with 2 abstentions, MEPs emphasise the need for a significantly more ambitious long-term EU budget (multiannual financial framework – MFF) that can deliver on EU citizens’ rising expectations against a rapidly changing global backdrop. The current spending ceiling of 1% of the EU-27’s gross national income (GNI) is not enough to address the growing number of crises and challenges, the report argues. With the US retreating from its global role, spending will have to address Russia’s war of aggression, a highly challenging economic and social backdrop, a competitiveness gap and the worsening climate and biodiversity crisis, according to the report.

No to single national plans

MEPs oppose the Commission’s idea of replicating the “one national plan per member state” model used in the Recovery and Resilience Facility for post-2027 spending in member states. Instead, they call for a structure that ensures transparency and parliamentary accountability, and involves regional and local authorities and all relevant actors. The report underlines the continued importance of cohesion policy to foster economic, social, and territorial integration, deepen the single market, reduce inequalities, and fight poverty and exclusion.

Competitiveness and defence

MEPs consider the Commission’s proposed Competitiveness Fund – which would merge several existing programmes – inadequate, calling instead for a new, targeted fund designed to leverage private and public investment through EU-backed de-risking mechanisms, building on the success of instruments like InvestEU and the Innovation Fund. The report also highlights the need for increased defence investment to support a comprehensive security approach, but stresses that this must not undermine social and environmental spending or long-standing policies.

Simplification and accountability

The next long-term budget must cut unnecessary red tape for those benefiting from EU funding, but must not give the Commission more leeway without the democratic scrutiny of Parliament. A simpler budget must be a more transparent budget, MEPs say. The report underlines that the budget’s design must safeguard Parliament’s role in holding the executive to account, putting in place strict accountability mechanisms and guaranteeing full transparency in relation to EU funds’ final recipients.

Flexibility and rule of law

Flexibility in spending is also key – crisis-response capabilities must be built into the long-term budget for each policy area, with humanitarian aid ring-fenced. The next budget should include two special instruments: for disaster relief and for other unforeseen challenges. The report insists that access to EU funds must be tied to respect for EU values and the rule of law, and advocates a smart conditionality mechanism so that beneficiaries are not penalised because of their government’s actions.

Debt repayment and joint borrowing

The repayment of NextGenerationEU borrowing costs must not endanger funding for key EU priorities, MEPs argue. The report calls for a clear separation between borrowing cost repayment and programme spending. The report urges the Council of member states to adopt new, genuine revenue resources for the sustainable financing of borrowing and of Europe’s higher spending needs. MEPs consider joint borrowing a viable option for tackling major EU-wide crises, such security and defence.

Quotes

“We want an EU budget that better reflects the Union’s new priorities like competitiveness and defence, while protecting long-standing ones such as agriculture and cohesion. That is why we call for a responsible and justified increase of the next MFF, moving beyond the self-imposed 1% of GNI cap. We also reject the Commission’s ‘one national plan per member state’ model, which we believe is unfit for managing spending in member states. Today’s vote shows Parliament’s Committee on Budgets is united and ready for the next EU budget proposal, with strong support from pro-European political groups for a more ambitious EU budget,” Siegfried Mureşan (EPP, RO), co-rapporteur, said.

“We have worked hard to incorporate nearly 2,000 amendments into our report, reflecting the majority vision for the next long-term EU budget. We want people and regions at the centre of the next MFF. We need strong investments to boost strategic autonomy, economic resilience, and green goals while leaving no one behind. In addition, an ambitious budget must promote social and territorial cohesion, include new and modernised sources of revenue, and guarantee sufficient funding for security, defence and preparedness as a pillar to ensure just and thriving societies, while upholding the rule of law and the EU’s core values,” Carla Tavares (S&D, PT), co-rapporteur, said.

Next steps

Parliament’s plenary is expected to vote on the report during its first session in May, setting out Parliament’s priorities, and feeding into the Commission’s proposal on the next long-term EU budget. The Commission is expected to unveil its proposal in July.

Background

The EU’s long-term budget, the multiannual financial framework (MFF) is typically established for a period of seven years and lays down the maximum spending ceilings for different policy areas. After having secured Parliament’s consent, granted by a majority of its component members, the Council, consisting of EU governments, adopts the MFF regulation; this requires unanimity. The EU’s current long-term budget runs out on 31 December 2027. About 93% of the EU budget funds regional and local projects, and support for agriculture, research, education, and businesses.