Hussain Muhammad Imam
The Members of the European Parliament (MEPs) have proposed an aggregate budget of nearly €201 billion before negotiations with member states.
The initial annual budget is the first to exceed expectations following the revision of the EU’s long-term financial framework. Interest costs associated with the Next Generation EU will be reimbursed.
The financing for critical programs such as Erasmus+ must not be reduced in response to the increasing repayment costs for the recovery plan.
Parliament mandates an EU budget for 2025 that prioritizes improving quality of life, enhancing competitiveness, and resolving current challenges.
The 2025 draft budget’s overall level of commitment appropriations was established by MEPs at nearly €201 billion, which is €1.24 billion higher than the Commission’s proposal from last June. Parliament aims to enhance the effectiveness of programs that are essential for addressing health challenges, supporting young people, agriculture, and rural areas, assisting individuals affected by natural disasters, promoting climate action, managing migration and security needs, and bolstering EU support for neighbouring regions that are currently experiencing geopolitical and humanitarian crises. MEPs restored €1.52 billion in financing cuts proposed by the Council and established payment appropriations at €153.5 billion.
Parliament has stated that the repayment costs of the European Recovery Instrument (EURI), which are twice the amount that was initially anticipated for 2025, should not lead to a decrease in funding for critical programs, such as Erasmus+ or R&D. The new “EURI cascade mechanism” introduced by the revision of the EU’s long-term budget is being pursued by MEPs to reverse the cutbacks made by member states to appropriations dedicated to these areas. This mechanism is intended to mitigate the escalating financing costs of the Next Generation EU without negatively impacting critical initiatives, thereby preserving the budget’s responsiveness and adaptability.
The general rapporteur for the EU budget 2025 (for section III – Commission), Victor Negrescu (S&D, Romania), stated, “Today’s vote is a strong signal of support for a citizen-centred EU budget that is focused on investments in economic development and improving the lives of those affected.” This is the reason we are requesting an additional €110 million for health-related initiatives, an additional €70 million for Erasmus, €42 million to safeguard our citizens from the consequences of natural disasters, an additional €96 million for agriculture, €120 million for humanitarian aid, and €110 million for the Eastern and Southern Neighbourhood.
“Cybersecurity has been a pressing concern for EU institutions since 2023,” stated Niclas Herbst (EPP, Germany), the rapporteur for the other sections. Another critical objective is to guarantee that the institutions have sufficient personnel to execute new responsibilities, such as implementing the Artificial Intelligence Act. Furthermore, it is imperative to enhance the security of European External Action Service structures, particularly those located in remote and high-risk regions where delegations are located. To resolve this issue, an increase of €37 million is necessary.
The vote catalyzes three weeks of “conciliation” negotiations with the Council to agree on the upcoming fiscal year. Parliament must subsequently vote on it and have its President sign it.
More than 90% of the EU budget funds activities in EU countries and beyond, benefiting citizens, regions, farmers, researchers, students, NGOs, and enterprises. In contrast to national budgets, the EU budget is predominantly focused on investment, to generate growth and opportunities throughout the European Union.
The EU provides services to 27 countries with a population of 450 million. The annual EU budget is comparatively small, with an average of €160-180 billion in 2021-27, as indicated by these figures. This is approximately 30% smaller than Poland’s budget, which serves 38 million people and is comparable to Denmark’s national budget, which serves 5.6 million people.
