The European Parliament and the governments of EU member states have reached an agreement on the European Union’s budget for 2026. Following formal approval by the EU Council and the European Parliament, the total budget commitments will amount to €192.8 billion, while planned payments will be €190.1 billion. Commitments define the maximum level of funding that the EU can allocate to various programs throughout the year, while payments are the actual amounts that will be disbursed.
This is reported by Business • Media
Key funding areas in the new budget
The budget for 2026 includes an increase in funding for strategic areas. In particular, an additional €372.7 million is directed towards key priorities. This includes the research program “Horizon Europe” (+€20 million), the development of cross-border transport and energy networks (+€23.5 million), the educational program Erasmus+ (+€3 million), the environmental initiative LIFE (+€10 million), and the health program EU4Health (+€3 million).
Additionally, €105 million is allocated for the promotion of agricultural products under the European Agricultural Guarantee Fund. Special attention is given to supporting young farmers, aimed at ensuring the sustainable development of the EU’s agricultural sector. Another €10 million will go to programs supporting the Civil Protection Mechanism, as well as €10 million for initiatives aimed at enhancing military mobility and strengthening the management of the European Union’s external borders.
Increase in debt servicing costs
In 2026, the European Union will face a significant increase in debt servicing costs for the NextGenerationEU Recovery Fund. It is projected that these costs will rise by €4.2 billion, which is double previous expectations, reflecting a trend towards increasing financial commitments in the coming years.
“This is a budget that responds to people’s concerns and advances Europe’s priorities. In times of global instability, Europe must remain competitive, resilient, and secure,” commented the President of the European Parliament, Roberta Metsola.