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REPORT (2023/2220(BUI))

On general guidelines for the preparation of the 2025 budget, Section III – Commission

A-9-2024-0068

Committee on Budgets · Rapporteur: Victor Negrescu

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Parliament's resolution sets out its guidelines for the 2025 EU budget, Section III – Commission. It calls for a robust, flexible, investment-oriented budget that protects programmes, boosts competitiveness and leaves no one behind in the green and digital transitions. It regrets the late MFF revision and tight margins, and demands full application of the rule of law conditionality, new own resources, and a special instrument above the MFF ceilings for crises. It asks for more funding for research and innovation, SMEs, young people, farmers, health, civil protection, culture, media and the CERV programme, and for gender budgeting across all policies. It calls for reinforced external action, including the Ukraine Facility, humanitarian aid, NDICI-Global Europe, support for enlargement and the Middle East, and adequate funding for migration and asylum agencies. It urges faster implementation of cohesion and recovery funds, simplification, and adequate resources for agencies, oversight bodies and communication.

Committee position. The Committee on Budgets proposes guidelines for the 2025 budget that call for a robust, flexible and investment-oriented EU budget, full application of rule of law conditionality, new own resources, reinforced external action and faster implementation of programmes.

Key points

  1. Parliament insists on a reliable, robust, flexible and investment-oriented EU budget for 2025 that responds to people's needs and boosts competitiveness.
  2. It regrets that the Council did not agree the MFF revision before the end of 2023, leaving tight and sometimes negative margins under the MFF ceilings.
  3. It considers the MFF revision outcome below its initial aspirations and says the revision is a prerequisite for support to Ukraine, targeted priorities and budget flexibility.
  4. It calls on the Council and Commission to apply the rule of law conditionality regulation in full and says funds cannot be disbursed if member states do not comply with all requirements.
  5. It says EURI borrowing costs are a legal, non-discretionary obligation and wants them placed fully in a special instrument above the MFF ceilings.
  6. It deplores the lack of Council progress on own resources reform and endorses new own resources to cover NextGenerationEU borrowing and shield margins.
  7. It wants an additional special instrument above the MFF ceilings so the budget can react quickly to crises and their social and economic effects.
  8. It calls for funding for research and innovation, SMEs, start-ups, young people, farmers, teachers and transport workers, and for the green transition, health, education and cohesion.
  9. It wants maximum funding for Erasmus+ and the European Solidarity Corps, with higher minimum mobility grants, and action on skills, brain drain and demographic challenges.
  10. It calls for sufficient funding for the EU civil protection mechanism, EU4Health, the Beating Cancer Plan, health research and joint procurement of medicines.
  11. It calls for strengthened budget lines for democracy, rights and values, the CERV programme, media pluralism, culture and the fight against disinformation and hate speech.
  12. It demands reinforced external action funding, including the Ukraine Facility, humanitarian aid, NDICI-Global Europe, enlargement support and continued predictable funding for UNRWA.

Who is affected

  • EU member states, which must comply with rule of law requirements to receive EU funds and speed up implementation of shared-management programmes.
  • Ukraine, which would receive support through the proposed Ukraine Facility for repair, recovery, reconstruction and its EU accession path.
  • Farmers and fishermen, who would benefit from CAP and fisheries funding, measures against inflation and input costs, and support for young farmers.
  • Small and medium-sized enterprises, start-ups and young people, who would benefit from dedicated funding, skills development and mobility programmes.
  • Civil society organisations, which would receive funding through the CERV programme and support for rule of law and fundamental rights work.

Figures and deadlines

  • 0.9 % in 2024 and 1.7 % in 2025: forecast European economy growth.
  • 3.0 % in 2024 and 2.5 % in 2025: expected inflation, above the 2 % MFF deflator.
  • 0.46 % in the draft budget 2024: call rate for the GNI-based own resource.
  • up to 2% per year: fixed deflator for gross reductions to GNI-based national contributions until rebates are abolished.
  • 3% of GDP: long-standing target for EU research and development investment intensity.
  • 10 % target for biodiversity-related spending in 2026 and 2027.
  • EUR 50 billion for the period 2024 to 2027: total amount of the Ukraine Facility.
  • EUR 7,9 billion over the period 2024 to 2027: Commission estimate of humanitarian aid needs exceeding initial envelopes.

Legal basis: Article 314 of the Treaty on the Functioning of the European Union and Article 106a of the Treaty establishing the European Atomic Energy Community.