Guidelines for the 2027 Budget - Section III
The European Parliament adopted by 389 votes to 191, with 75 abstentions, a resolution on general guidelines for the preparation of the 2027 budget, Section III - Commission.
Budget 2027: the final year of the current MFF must focus on delivery for people, the economy and the planet and on providing investments for competitiveness
Parliament considers that, in times of profound geopolitical and institutional instability, security threats, protectionist pressures, loss of competitiveness, budgetary pressure and societal challenges, a predictable, robust, citizen-centred, efficient and investment-oriented EU budget remains central to the implementation of the EU’s policies.
The EU budget should respond to increasing needs, deliver prosperity through increased competitiveness, promote territorial, economic and social cohesion, create and protect high-quality jobs, and ensure security and defence capabilities. This should be achieved through boosting the EU’s long-term competitiveness, reducing strategic dependencies, closing innovation gaps, accelerating clean energy deployment, speeding up the implementation of the green and digital transitions, contributing to global climate action and fighting against biodiversity loss.
Although the EU budget has contributed to alleviating the effects of major crises, it remains ill-equipped, in terms of size, structure and rules, to fully play its role in adjusting to evolving spending needs, challenges and fast-changing priorities, and in addressing shocks, responding to crises and giving practical effect to the principle of solidarity, including by protecting employment, reducing poverty and inequality, and supporting access to healthcare and education.
The EU budget for 2027 will be the seventh and final budget under the 2021-2027 multiannual financial framework (MFF). It will act as a bridge to the upcoming 2028-2034 MFF and, therefore, needs to ensure continuity in addressing present and future challenges. Parliament is confident that a strong, responsible, efficient and forward-looking 2027 budget will consolidate the progress made under the current MFF, notably through higher budgetary execution and absorption rates. The 2027 budget should place a strong emphasis on effective delivery and the timely implementation of mature, high-impact projects, in order to generate tangible results for people and regions. The budget also constitutes a decisive test of the EU’s financial management, in particular for efficiently limiting the reste à liquider (RAL) (outstanding commitments).
Strengthening Europe’s social model, territorial cohesion and security, safeguarding fundamental values and fostering prosperity
The growing challenges posed by the current economic, social and geopolitical context are constraining cohesion policy funds. Parliament called for adequate funding to address these issues, ensuring the sustainability and improvement of people’s quality of life across all regions, boosting the EU’s and the regions’ competitiveness and innovation, and addressing demographic challenges, thereby contributing to the EU’s long-term growth, resilience and well-being.
The 2027 budget should:
- support increased investment in critical infrastructure, including transport networks, digital connectivity and energy systems, with targeted support for less-developed regions, as well as insular and remote areas;
- support strong and sustainable public health systems with mental health being a priority. In this regard, sufficient budgetary allocations should be allocated to the EU4Health programme;
- urgently invest in the housing crisis;
- ensure continuous funding of the Asylum, Migration and Integration Fund and the Border Management and Visa Instrument (BMVI).
Creating economic opportunities in the face of strategic challenges
Parliament reaffirmed the EU’s commitment to climate neutrality by 2050 and called for increased investment in energy efficiency, the circular economy, biodiversity and digital innovation. The resolution also stressed the need for adequate support for farmers, the fisheries sector, civil protection, and effective asylum, migration and border management, particularly for EU countries with external borders.
In particular, the budget should include:
- increased investments in areas such as energy efficiency, renewable energy and resilient electricity grids, cross-border mobility, the circular economy, biodiversity protection, digital innovation and AI, and smart energy infrastructure;
- a genuine energy union by bridging the investment gap of EUR 660 billion annually for energy-related investments, in particular in energy interconnections and in strategic technologies, ensuring the transition away from Russian fossil fuels;
- ambitious funding for the LIFE programme in order to accelerate the shift towards a sustainable, climate-neutral and resilient economy;
- provide for increased allocations for public investment in transport infrastructure, cross-regional transport networks and the promotion of public transport and sustainable mobility in order to enhance EU connectivity, support sustainable mobility and strengthen territorial cohesion;
- measures to strengthen EU military mobility as regards funding dual-use transport infrastructure along priority axes;
Global Europe: acting today, preparing for tomorrow
Parliament stressed the urgent need for the EU to strengthen its common external policy and global influence, given the evolving geopolitical landscape, marked by shifts in US policy, Russia’s war against Ukraine and escalating global conflicts. It pointed out the necessity for the EU to secure adequate funding and resources in the 2027 budget while recalling the importance of an updated Strategic Compass and the crucial diplomatic role of the European Global Gateway.
Members called for adequate funding for the humanitarian aid programme to address crises in regions affected by protracted conflict, displacement, food insecurity and natural disasters.
The 2027 budget, as the final one of the current MFF, should ensure that the Instrument for Pre-accession Assistance (IPA) III and neighbourhood support are conditional on respect for European values.
Cross-cutting issues in the 2027 budget
Parliament is concerned about the limited level of availabilities in the 2027 budget in regard to the Union’s priorities and budgetary needs. In this respect, it asked for full use of the available decommitments in order to ensure a sufficient level of financing aiming at an effective implementation of programmes and priorities.
Members warn that rising borrowing costs linked to the NextGenerationEU recovery instrument must not come at the expense of established EU programmes and stressed the urgent need for new revenue sources.