EU Budget 2026: Focus on Competitiveness, Preparedness, and Defence

The European Parliament has adopted its position on the European Union’s 2026 budget, calling for total commitments of €193.9 billion — an increase of €597.8 million compared with the European Commission’s initial proposal. Payments are set at €192.6 billion, with negotiations with the Council expected to begin in early November.

In a context of global instability, growing security threats, protectionism, and accelerating climate change, the Parliament is advocating for a robust and investment-oriented budget to strengthen competitiveness, research, defence, and social cohesion. MEPs rejected the Council’s proposed cuts, restoring the Commission’s initial levels — including €1.3 billion in commitments for key programmes such as Erasmus+ and EU4Health, which they consider vital to supporting citizens and advancing European integration.

Boosting research, innovation, and cross-border infrastructure
Particular emphasis is placed on research and innovation, with an additional €60 million allocated to Horizon Europe, as well as on cross-border transport and energy infrastructure, which will receive €80 million more.
Erasmus+ and EU4Health are each set to gain an extra €5 million, supporting education, mobility, and public health across the Union.
The Parliament also calls for increased resources for civil protection and EU defence readiness, including €30 million more for the EU Civil Protection Mechanism and €35 million for military mobility, to enhance Europe’s capacity to respond to natural disasters and security crises.
Further support is directed to food security and the agricultural sector, with €23 million earmarked for young farmers and €40 million for the European Agricultural Guarantee Fund (EAGF).

Responding to global crises and humanitarian needs
Taking into account geopolitical instability and the rise in humanitarian emergencies, MEPs are calling for an additional €35 million for the Southern Neighbourhood (Middle East and North Africa), €25 million for the Eastern Neighbourhood (Eastern Europe and the Caucasus), and €50 million for humanitarian aid — particularly to address the effects of climate change, armed conflicts, and global crises.

Managing debt costs without cutting key programmes
One of the most pressing concerns is the rising cost of borrowing to finance the NextGenerationEU recovery programme, which is expected to reach €4.2 billion in 2026 — double the initial estimates.
Parliament insists that this burden must not lead to cuts in essential EU programmes, urging the full activation of the step-up financing mechanism to ensure debt sustainability without undermining investment in education, health, and research.
“The EU budget is a vital investment tool for a stronger Europe — responding to citizens’ calls for security, unity, and prosperity. It supports competitiveness, SMEs, and farmers, while reinforcing civil protection and security,” said Andrzej Halicki (EPP, Poland), Parliament’s general rapporteur for the 2026 EU budget.
Matjaž Nemec (S&D, Slovenia), rapporteur for the other sections, added: “In the face of geopolitical challenges, we must equip our institutions with adequate resources and staff to operate efficiently, resiliently, and transparently — for the benefit of citizens.”

Next steps and broader context
Talks with the Council of the EU are expected to last three weeks, with the goal of reaching a final agreement before year-end.
According to European Commission data, over 93% of the EU budget is directly invested in programmes and projects that benefit citizens, businesses, and organisations across the Member States — as well as partners beyond the EU.

The annual EU budget, which typically ranges between €160 and €200 billion, is comparable to Poland’s national budget and represents roughly 30% of Germany’s — demonstrating how the Union delivers substantial European added value with relatively limited resources.

Source: European Parliament – Committee on Budgets (BUDG)