European Parliament and EU member states agree €199.7 billion EU budget for 2027

Negotiators from the European Parliament and EU member states have reached a provisional agreement on the European Union’s 2027 budget, setting its size at €199.7 billion after talks in Brussels that continued into the early hours. The deal prioritises competitiveness, security and defence, and support for Ukraine.

The agreed total is slightly below the €199.9 billion that the European Commission had proposed. By comparison, the EU budget for 2026 stood at about €190 billion. Member states say the compromise will permit the implementation of already approved programmes while preserving room to respond to unforeseen events, including developments in Ukraine and the Middle East.

Negotiators highlighted the main focus areas of the 2027 package: measures to strengthen the bloc’s competitiveness, stepped-up spending for security and defence, and continued financial aid to Ukraine.

Next steps

The political deal now requires formal approval by the Council of the European Union and the European Parliament before it can take effect.

The 2027 budget is the final annual budget under the 2021–2027 Multiannual Financial Framework, whose total envelope is about €1.1 trillion. The funds are mainly drawn from member-state contributions.

Meanwhile, negotiations on the next seven-year financial framework for 2028–2034 are continuing in Brussels. Member states aim to reach an agreement by the end of the year, but positions remain widely divergent.

Photo: press material from the event