Brussels – Competitiveness, digital and energy infrastructure, cohesion policy, housing crisis, rising cost of living, external border security, and common defence. According to the European Parliament’s Budget Committee, these are the priorities for the 2027 financial year, the last year of the current 2021-2027 Multiannual Financial Framework (MFF). The report, adopted by committee members with 20 votes in favour, six against, and two abstentions, outlines a strategy aimed at balancing economic growth with geopolitical stability in a context of limited resources, as only a few funds remain to address emerging challenges in what will be the final annual budget under the current long-term 2021-2027 budget.
Among the parliamentary committee’s requests is strengthening the cohesion policy, which is considered an essential driver of competitiveness and the development of digital and energy infrastructure. MEPs also call for targeted measures to combat the rising cost of living and the housing crisis, proposing greater use of the European Social Fund Plus (ESF+). Similarly, MEPs are calling for funding for common defence and the protection of external borders, with a particular focus on Member States bordering Ukraine, Russia, and Belarus. In the geopolitical context, they argue for more effective EU external action and increased funding for development and humanitarian assistance.
On the sustainability front, the report reaffirms the goal of climate neutrality by 2050, emphasising the need to bridge an annual energy investment gap estimated at 660 billion euros. At the same time, it calls for adequate support for the agriculture and fisheries sectors.
However, NextGenerationEU financing is a major concern. According to projections, interest payments could double in 2027, rising from the original forecast of 4.98 billion euros to around 10 billion. “In the final year of this budget cycle, we must invest in quality jobs, affordable housing, innovation and strong public services, support Eastern border member states, and rethink how we spend EU funds to deliver real results for citizens,” said general rapporteur Nils Ušakovs, reiterating the importance of ensuring that these costs do not penalise the Union’s investment programmes.
In its February conclusions, the EU Council reiterated the need for a “realistic” budget. While confirming their support for Ukraine “for as long as necessary,” Member States emphasised financial discipline and monitoring of outstanding commitments. They also called for prudent management of administrative expenditure and greater transparency on revenue.
In a recent economic bulletin, the European Central Bank signalled a return to fiscal discipline. With the conclusion of the stimulus measures linked to the National Recovery and Resilience Plan (NRRP), fiscal policy in the euro area is set to become restrictive in the 2027-2028 two-year period. This scenario, due to the need to stabilise the debt-to-GDP ratio, could force Member States to make difficult choices between spending cuts and maintaining public services.
The next steps in setting the 2027 budget include a vote in plenary session between 9 and 12 March. The Commission is expected to present its 2027 budget proposal in the summer, and the Council and Parliament will need to agree on it by the end of this year so it can come into force in 2027.
English version by the Translation Service of Withub
