The agreement concluded overnight talks between the Council of the European Union and the European Parliament. The deal sets €199.7 billion in funding commitments for new projects. It keeps €710.1 million available for unforeseen circumstances, Irish Finance Minister Simon Harris, chief negotiator for the Council, said in an official statement.
Four-fifths of the budget increase falls under two major spending headings. The Cohesion, Resilience, and Values heading will disburse €81.8 billion in payments, an increase of €8.7 billion over 2026. Natural Resources and Environment, which includes common agricultural policy subsidies, rises by an identical €8.7 billion. By contrast, payments for single market, innovation, and digital programs total €22.9 billion, running slightly below original draft targets. Parliament restored proposed cuts to education and research, securing €21.5 million more for Horizon Europe and €14 million for Erasmus+. Transport and energy infrastructure networks received €22.5 million in additional support.
The agreed budget establishes €3.1 billion, or roughly $3.4 billion, in dedicated defense and security spending for 2027, Breaking Defense reported. Direct defense payments stand at €2.23 billion, while new commitments rose to €3.08 billion. The budget allocates €650 million toward the Ukraine Support Loan, supplementing the previously promised €90 billion multi-year loan package. Ukraine requests additional financing heading into 2027.
Final votes within 14 days on 2027 EU budget deal
Both the Council and the full European Parliament must formally vote to approve the agreed text within 14 days. Final legislative adoption is expected before month-end. Negotiators emphasized that this budget marks the final annual expenditure plan under the EU's 2021–2027 Multiannual Financial Framework. Battles over the subsequent seven-year budget covering 2028 through 2034 are already heating up in Brussels.
