The Council of the European Union and the European Parliament have reached an agreement on the EU’s annual budget for 2026, set at €192.8 billion, slightly below the European Commission’s June proposal of €193.2 billion. This budget supports the EU’s strategic priorities while maintaining the flexibility to respond quickly to unforeseen challenges.
The 2026 budget will strengthen Europe’s competitiveness and defence readiness, support humanitarian assistance, and address migratory pressures, while safeguarding the ability to react to emerging crises. It is the last year in which significant payments will be made under NextGenerationEU, the EU’s post-pandemic economic recovery instrument. The budget also forms part of the 2021–2027 Multiannual Financial Framework, a period shaped by major disruptions such as the COVID-19 pandemic, the war in Ukraine, energy crises, and rising geopolitical tensions.
The agreement also allows Member States to redirect Cohesion funding toward emerging priorities, including competitiveness, defence, affordable housing, water resilience, and the energy transition. This flexibility enables regions to allocate resources more effectively and accelerate payments to beneficiaries, enhancing the EU’s primary instrument for reducing regional disparities and fostering balanced development.
Allocation overview for 2026 (€ million):
- Single Market, Innovation and Digital: 22,163
- Cohesion, Resilience and Values: 71,649.8
- Natural Resources and Environment: 56,529.4
- Migration and Border Management: 5,018.9
- Security and Defence: 2,813.5
- Neighbourhood and the World: 15,600
- European Public Administration: 13,277.5
- Thematic Special Instruments: 5,715.9
Total Appropriations: €192.8 billion
Nicolai Wammen, Minister for Finance of Denmark and chief Council negotiator for the 2026 EU budget, shared: “Today’s agreement shows that Europe can deliver, even in challenging times. The 2026 EU budget will allow us to deliver on our common priorities – security, competitiveness and border control – all while ensuring that the EU can react swiftly and effectively to unforeseen needs and crises”.
The Council is expected to formally endorse the budget on 24 November, with the European Parliament following shortly after. Once approved, the budget will come into force on 1 January 2026, guiding EU spending during the second-to-last year of the current Multiannual Financial Framework.
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