Deal reached on EU 2025 budget

The European Parliament and Council have finalised a provisional deal on the EU budget for 2025, with funds secured to help EU countries facing climate-related disasters.

MEPs secured a solution for the repayment costs of the European Recovery Instrument (EURI), which doubled compared to initial forecasts. This was achieved without cutting funding for essential programmes such as Erasmus+ and R&D, utilising a newly introduced “EURI cascade mechanism” to manage borrowing costs flexibly.

Parliament also negotiated an extra €230.7 million beyond the European Commission’s draft proposal, enhancing programmes like Erasmus+, Horizon Europe, Civil Protection, Humanitarian aid, Migration and border management, and LIFE programme for biodiversity and climate action.

Up to €3 billion in frontloaded payments were agreed upon to aid regions hit by natural disasters, allowing member states to use 10% of existing Cohesion Policy funds for recovery, upon submitting amended programmes.

Additional resources were allocated for cybersecurity, the European Public Prosecutor’s Office (EPPO), Europol, and oversight of AI use across EU institutions.

Preliminary totals are €199.44 billion in commitment appropriations and €155.1 billion in payment appropriations.

Johan Van Overtveldt (ECR), Chair of the Committee on Budgets said the agreement shows the EU can act and adapt during uncertain times.

“The EU budget is only a part of the whole task that lies ahead of us. Simplifying procedures, increasing flexibility and cutting the administrative burden are in my view as important as spending money to mobilise the innovative power of our citizens and companies.”

Once the Council adopts the compromise, by a Parliament vote will take place on November 27 before it is signed into law.