EU Budget 2025: Compromise between Council and Parliament

|News|18 November 2024

EU Budget - Photo credit: European Parliament, Building, EP - © European Union 2023 - Photographer: Christophe Licoppe The EU institutions have reached a compromise that foresees commitments for 192.7 billion and payments for 149.6 billion for the 2025 European budget. Including allocations for special instruments outside the Multiannual Financial Framework (MFF), the total budget for the next year amounts to 199.4 billion euros in commitments and 155.2 billion in payments. 

The compromise on the 2025 European budget reached on November 16 mediates between the cuts proposed by the Council's negotiating position and the increase requested by the European Parliament.

From the date of the compromise, a 14-day window opens to formalize the agreement with the vote of the 27 and the plenary of the EP. The Council is expected to adopt the 2025 budget on November 25. The Parliament has scheduled the vote during the plenary session from November 25-28, with a debate on the afternoon of the 26th and a vote on the morning of the 27th.

What is the value of the EU Budget 2025

The EU 2025 budget proposal presented in June by the Commission included commitments (i.e., the funding that can be agreed upon in contracts in a given year) for 199.7 billion euros and payments (i.e., the money actually disbursed) for 152.7 billion. On October 10, the Commission adopted an amending letter to the general budget proposal, reducing the level of commitments by 303 million euros and increasing the level of payments by 2.657 million euros.

In its negotiating position, the Council instead proposed commitments of 191.53 billion and payments of 146.21 billion, with cuts justified by the need to take a "prudent and realistic" stance, in light of the war in Ukraine and other crises impacting the Union, leaving room to manage unforeseen circumstances and costs related to the repayment of Next Generation EU loans.

For its part, the European Parliament proposed commitments of 201 billion euros and payments of 153.5 billion euros to continue adequately supporting investments in economic development and improving people's lives and ensuring sufficient staff for EU institutions to perform new tasks, such as implementing the Artificial Intelligence Act.

The period of conciliation between EU institutions allowed a compromise to be reached on November 16, setting commitments at 192 billion and 768.6 million euros and payments at 149 billion and 615.7 million euros, excluding allocations for special instruments outside the MFF.

Including allocations for special instruments, the 2025 budget totals 199.4 billion euros in commitments and 155.2 billion in payments.

The funds are distributed as follows:

  • 1. Single market, innovation, and digital: 21,480.1 euros
  • 2. Cohesion, resilience, and values: 77,980.2 euros
    — Economic, social, and territorial cohesion:66,365.7 euros
    — Resilience and values:11,614.4 euros
  • 3. Natural resources and environment: 56,731.3 euros
    Including market-related expenditure and direct payments: 39,975.9 euros
  • 4. Migration and border management: 4,791.1 euros
  • 5. Security and Defense: 2,632.6 euros
  • 6. Neighborhood and the world: 16,308.2 euros
  • 7. European public administration: 12,845.0 euros
  • Special thematic instruments: 6,669.9 euros
  • Total allocations: 199,438.4 euros

Resources amounting to 800.5 million euros are kept available, within the spending ceilings of the current Multiannual Financial Framework 2021-2027, allowing the EU to respond to unforeseen needs.

For more information, consult the official documents on the EU budget 2025

Translation AI assisted