Thu. Sep 19th, 2024

Brussels, 17 July 2024

Today, the EU Council reached an agreement on its position on the 2025 EU draft budget. In total, the Council’s position for next year’s budget amounts to €191.53 billion in commitments and €146.21 billion in payments.

Next year’s budget will play an important role in delivering the EU’s long-term priorities and objectives. The agreement reached provides a good starting point for negotiations with the European Parliament, which we hope will allow the budget to be adopted on time. The proposed budget aims to ensure prudent budgeting, and to leave margins for unforeseen circumstances.

Péter Banai, Hungarian Minister of State responsible for the budget negotiations

Overall, the Council takes a prudent approach. The Council stresses the importance for the budget for 2025 to continue showing the EU’s solidarity with the people of Ukraine and to respond to the related crises.

The Council considers that next year’s budget should be realistic, in line with actual needs, ensure prudent budgeting and leave sufficient margins under the multiannual financial framework (MFF) ceilings to deal with unforeseen circumstances and address the Union’s challenges.

At the same time, the budget for 2025 should provide enough resources to ensure the implementation of the EU’s policies and programmes and to allow commitments already made to be paid in due time.

The Council welcomes that the draft budget for 2025 is aligned with the outcome of the agreement on the revision of the EU’s multiannual financial framework (MFF 2021-2027), as outlined in the European Council conclusions of 1 February 2024.

In this regard, the Council stresses the need to properly finance the priorities laid down in the MFF revision, considering the budgetary implementation of all programmes and reprioritisation, when necessary.

A summary of the Council’s position is set out in the table below:

Commitments are legal promises to spend money on activities whose implementation extends over several financial years.

Payments cover expenditure arising from commitments entered into the EU budget during current and preceding financial years.

In addition, the Council also issues five statements: one on payments in 2025, one on progress on the implementation of the MFF mid-term revision, one on budgetary nomenclature, one on financing of external policies and one on administrative expenditure.

Next steps

Today’s agreement was reached between the ambassadors of member states to the EU (Coreper). The Council aims to formally adopt its position through a written procedure ending on 13 September 2024. The Council’s position will serve as a mandate for the Hungarian presidency of the Council to negotiate the 2025 EU budget with the European Parliament. This year, the legal deadline for reaching agreement on the annual budget is 18 November 2024 at midnight.

Background

This is the fifth annual budget under the long-term EU budget, the multiannual financial framework (MFF) for 2021-2027. The 2025 budget is complemented by actions to support the COVID-19 recovery under Next Generation EU, the EU’s pandemic recovery plan.

The Council approved guidelines for the 2025 annual budget on 12 March 2024. The Commission presented the estimates for the draft budget on 19 June 2024.

Source – EU Council

 

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