Funding restored for key programmes cut by EU governments

Significant boosts for Horizon Europe, Erasmus+, EU4Health, climate action, infrastructure, and support for neighbouring regions

First annual budget based on the 2024 revision of the EU’s long-term financial framework

Escalating recovery plan repayment costs should not reduce funding for essential programmes like Erasmus+

The Committee on Budgets has adopted its position on the 2025 EU budget, focusing on improving people's lives, boosting competitiveness, and addressing current challenges.

On Monday, MEPs restored €1.52 billion in funding cuts proposed by the Council, bringing allocations back to the levels originally suggested by the Commission. They also increased funding for programmes vital to address the impacts of Russia's war against Ukraine, the need for green and digital transitions, and supporting economic recovery.

Key increases include:

- Research and innovation: Horizon Europe +€242 million, plus €180 million from decommitted research funds

- Transport and energy networks: Connecting Europe Facility +€70 million

- Digital transition: Digital Europe Programme +€15 million

- Support for SMEs: +€5 million

Health, education, and youth:

- EU4Health: +€50 million to invest in preventing cardiovascular diseases, cancer, children's diseases, and improving mental health

- Erasmus+: +€70 million to make the programme more accessible, especially for those facing economic challenges

- Creative Europe: +€8 million to support cultural and creative sectors

Agriculture and environment:

- Young farmers: +€40 million for income support

- Common Agricultural Policy: +€56 million for fruit and vegetable sectors, school schemes, and promotion of agricultural products

- LIFE programme: +€49 million for nature, biodiversity, and climate action

- Civil Protection Mechanism: +€42 million to enhance crisis response to natural disasters linked to climate change

Migration, border management, and security:

- Asylum, Migration and Integration Fund: +€25 million

- Border Management and Visa Instrument: +€35 million, supporting Romania and Bulgaria's Schengen accession

- Internal Security Fund: +€5 million to combat serious and organised crime and cybercrime

- Military mobility: +€20 million

Neighbourhood and the world:

- Southern Neighbourhood: +€60 million to support reforms and humanitarian needs

- Eastern Neighbourhood: +€50 million to assist countries like Moldova

- Humanitarian aid: +€120 million for rising needs due to global crises and climate emergencies

All proposed increases should come on top of the draft EU budget 2025 proposed by the European Commission in June.

Repayment costs for the European Recovery Instrument (EURI)

MEPs emphasise that the EURI repayment costs, which are twice the amount initially forecasted for 2025, should not reduce funding for essential programmes, like Erasmus+ or research. They therefore restore the cuts made by member states to appropriations dedicated to these costs and insist on the proper use of the new “EURI cascade mechanism” introduced by the revision of the EU’s long-term budget (MFF, multiannual financial framework). This mechanism is designed to manage the escalating Next Generation EU borrowing costs without impacting key initiatives, maintaining the budget’s flexibility and response capacity.

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Victor Negrescu (S&D, Romania), general rapporteur for the EU budget 2024 (for section III - Commission), said: “Today’s vote in the Committee on Budgets showed that the Parliament’s position is constructive, strong, and argument-based, and proves that our role as budgetary authority is key to the balance of powers in the European Union.

With a people-centered 2025 EU budget of more than 200 billion euros, we are asking for adequate funding for youth, farmers, SMEs, education, health, research, infrastructure, security and humanitarian aid. While financing the Recovery and Resilience Facility and respecting the MFF revision priorities, we would like to see a 70 million euro increase for Erasmus, on top of requesting the restoration of the 300 million euro cut by the Council, a 110 million euro increase for the EU4Health programme and Cluster Health under Horizon Europe, a 96 million euro increase for agricultural programmes and an additional 42 million euros for the Union Civil Protection Mechanism.

The Council should listen to our reasonable proposal and stop blocking the EU from acting in the interests of our citizens."

Next steps

The full Parliament will vote on its position during the 21–24 October plenary session, launching three weeks of negotiations with the Council to reach an agreement before the end of the year.

Background

Over 90% of the EU budget funds activities in EU countries and beyond, benefiting citizens, regions, farmers, researchers, students, NGOs, and businesses. Unlike national budgets, the EU budget is primarily an investment budget designed to generate growth and opportunities across the Union.