Opinion on general guidelines for the preparation of the 2027 budget, Section III – Commission

24.02.2026

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on general guidelines for the preparation of the 2027 budget, Section III – Commission (2025/2246(BUI))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Security and Defence has been asked to submit an Opinion to your committee. On 21 January 2026, SEDE Coordinators decided by written procedure to send the Opinion in the form of a letter, which SEDE adopted at its meeting of 24 February 2026 .

I would be most grateful if you would incorporate the attached SEDE opinion appropriately into your motion for a resolution.

Yours sincerely,

Marie-Agnes STRACK-ZIMMERMANN

OPINION

The Committee on Security and Defence calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Stresses that the 2027 budget, as the final year of the 2021–2027 multiannual financial framework (MFF), must consolidate the Union’s shift towards security, defence readiness and resilience, while ensuring continuity into the next MFF; underlines that the end-of-MFF context is characterised by extremely limited margins, requiring a focus on delivery, prioritisation and impact, relying primarily on flexibility, targeted redeployments and gap-filling instruments rather than the creation of new large-scale budgetary envelopes.

2. Stresses that, in 2027, budgetary choices should prioritise capability-driven outcomes and mature actions with demonstrable European added value that plug the most urgent gaps in European military capabilities and reduce dependencies that undermine European strategic autonomy.

3. Highlights the evolution of the Union’s defence policies including defence industrial policy to achieve the full spectrum from research to deployable capabilities; stresses the importance of ensuring continuity between the European Defence Fund (EDF), crisis-driven industrial instruments such as ASAP, and the European Defence Industry Programme (EDIP), which serves as a structural bridge for the period 2025–2027; underlines that this evolution implies a strengthened role for the Commission in defence industrial coordination, working closely with the European Defence Agency, while recalling the essential role of the European Parliament as budgetary authority and its responsibility for democratic scrutiny, transparency and accountability of Union expenditure.

4. Draws attention to the constraints affecting the scale-up of the European Defence Technological and Industrial Base (EDTIB), noting the tension between growing Union-level political ambition, including flagship defence industrial projects and coordinated capability initiatives, and the limited financial resources available in the final years of the current MFF; recalls that the EDIP envelope amounts to EUR 1.5 billion for the period 2025–2027, which while politically significant, remains insufficient to finance multiple large-scale industrial priorities simultaneously; recalls, in this regard, the agreement reached by the co-legislators on the EDIP Regulation to invite the Commission, without prejudice to the prerogatives of the budgetary authority in the framework of future annual budgetary procedures, to explore as a matter of priority options to reinforce the budget for EDIP and the Ukraine Support Instrument in line with point 18 of the IIA on budgetary discipline without reducing similar EU programmes and funds; underlines that in view of the potential pivotal role of the Fund Accelerating the defence Supply Chains Transformation (FAST) in enhancing defence manufacturing capacities of SMEs and small mid-caps, additional financial contributions should be allocated as a priority to FAST, with the aim that the overall indicative amount for that particular fund under the Programme will reach at least EUR 150 million.

5. Underlines the imperative to ensure EU-level off-budget instruments, national defence budget increases and EU instruments are maximised for aggregating demand and joint procurement focussed on overcoming capability gaps and the urgent needs of Ukraine; remains seized of the legal basis of SAFE which undermines parliament's ability to ensure that EUbacked loans result in joint procurement of urgent capability gaps and an end to past practices that led to fragmentation and critical capability gaps.

6. Stresses that the EDF remains the cornerstone of Union action in defence research and development, contributing to the competitiveness, innovation capacity and resilience of the EDTIB, fostering cross-border cooperation and reducing fragmentation; notes that EUR 6.4 billion has been committed so far to cooperative defence R&D, with 224 EDF projects completed, involving around 40% SMEs participation; underlines the importance of maintaining predictability and continuity of the EDF, particularly in an end-of-MFF context marked by high demand and a strong project pipeline.

7. Stresses that military mobility remains a critical enabler of EU security and defence; notes with concern that financing constraints continue to hamper military mobility, as the very limited resources available under the current Connecting Europe Facility and other Union instruments have already been used up or remain insufficient to upgrade strategic transport corridors, in particular military mobility corridors, at the scale required; emphasises that military mobility is essential for contributing to the defence of Europe and enhancing interoperability within the Union and NATO and with partners, notably Ukraine; underlines the need for a more ambitious and forward-looking approach both for 2027 and under the next MFF, ensuring adequate funding and flexibility.

8. Firmly reiterates its unconditional and unwavering support for Ukraine in its fight for freedom, sovereignty and democracy against Russia’s illegal, unprovoked and unjustified war of aggression; supports the establishment of the Ukraine Support Loan for 2026 and 2027, amounting to EUR 90 billion; regrets that the Council failed to reach an agreement on securing a Reparations Loan for Ukraine against cash balances of frozen Russian assets; remains convinced that the option of using frozen Russian assets should continue to be explored in order to support Ukraine beyond 2027; welcomes the dedicated commitment to twothirds, approximately EUR 60 billion, for urgent military assistance for Ukraine to defend itself against Russia's aggression and also to invest in Ukraine's defence industrial base thereby facilitating its integration into the EU's defence industrial base; welcomes the financing of these costs through this dedicated new thematic special instrument, whilst preparing instruments for longer term support to Ukraine in the MFF, which contributes to the sustainability, predictability and credibility of the Union’s long-term support, thereby helping to preserve Ukraine’s capacity to maintain essential state functions, resilience and defence-related efforts while safeguarding the Union’s ability to provide continued security assistance.

9. Emphasises the strategic relevance of emerging, disruptive and dual-use technologies, including artificial intelligence, cyber, quantum and space-enabled capabilities, for the Union’s security, deterrence and preparedness; notes that 5.6% of the EDF 2026 budget was dedicated to disruptive innovation; looks forward to the EU establishing, with adequate resources, its first EU-level DARPA-like initiative in the form of the AGILE programme; stresses the need to ensure coherence between defence-specific instruments and related Union programmes, ensuring procedural clarity and timely implementation, particularly where work programmes are amended.

10. Underlines the need to strengthen the Union’s capacity to monitor and counter hybrid threats originating outside the Union, including foreign information manipulation and interference, cyberattacks, threats to space assets and risks to defence-related critical infrastructure; stresses that hybrid resilience must be treated as a cross-cutting priority in the 2027 budget, with improved coordination, situational awareness and operational support including in complementarity with the EU's CSDP missions.

11. Stresses that cyber defence and the information domain remain critical yet insufficiently addressed components of the Union’s security posture, particularly in the context of EU external action and CSDP missions; underlines the added value of Union-level coordination and analysis in the cyber and information domains, while expressing concern that insufficient and unstable funding continues to limit the sustainability and effectiveness of such efforts; recalls, in this context, the planned establishment of the EU Cyber Defence Coordination Centre (EU CDCC) as the Union’s military cyber coordination hub, and regrets that no dedicated resources have been allocated for its establishment in the EEAS budget for 2026, despite the Centre being foreseen to reach up to 30 staff members; calls, therefore, for the necessary human and financial resources for the EU CDCC to be duly reflected in the EEAS budgetary procedure for 2027.

12. Stresses the importance, in the 2027 annual budget, of strengthening preparedness and resilience against hybrid threats and high-intensity conflict scenarios within existing Union instruments; highlights the strategic value of coordinated stockpiling of critical defence-related components, raw materials and consumables, in order to mitigate supply disruptions, reduce external dependencies and ensure sustained production and operational readiness; calls for targeted support and improved coordination within existing frameworks.

13. Recalls that the current ceiling under Heading 7 is incompatible with the operational needs of an adequately staffed European External Action Service (EEAS), and reiterates its call for an adjustment of this ceiling in line with the EEAS Statement of Estimates; reiterates its call for the reinforcement of staffing of the Military Planning and Conduct Capability (MPCC), in accordance with the PSC-endorsed business case and the growing requirements for EU-level operational defence planning; again underlines the persistent need for the procurement of secure Communication and Information Systems (CIS) to ensure the effective command, control and oversight of all CSDP missions.

14. Stresses that increased ambition in security and defence must be matched by adequate implementation and administrative capacity, recalling that new tasks and responsibilities require corresponding human and financial resources; insists that the final year of the current MFF should be used to reinforce evidence-based budgeting, avoid an “absorption at any cost” approach and build a robust foundation for a credible, defence-ready next MFF.

ANNEX: DECLARATION OF INPUT

The rapporteur for opinion declares under his exclusive responsibility that he did not include in his opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.