The Council of the European Union has approved the joint text for the EU’s general budget for 2025, finalizing commitments of €192.768 billion and payments of €149.615 billion. This decision follows negotiations with the European Parliament, concluded on November 16, 2024.
The budget includes provisions for unforeseen circumstances, with €800.5 million reserved under the expenditure ceilings of the current multiannual financial framework (MFF) for 2021-2027. Including appropriations for special instruments outside the MFF, the total commitments rise to €199.438 billion, and total payments to €155.209 billion.
Péter Banai, Hungary’s Minister of State and chief Council negotiator for the 2025 EU budget, emphasized the importance of a balanced approach.
“Next year’s budget will allow us to focus on the EU’s priority areas while ensuring a prudent and realistic approach to spending taxpayers’ money,” Banai said.
“We have kept enough financial margin to respond to unforeseen circumstances, taking into account the current economic and geopolitical context.”
The Commission initially proposed commitments of €193.046 billion in its July 2024 draft budget. This figure was adjusted during negotiations, as the Council and European Parliament submitted differing positions in September and October.
The final agreement, achieved by the Conciliation Committee, bridges the gaps between these proposals.
Initial Proposals:
Council: €191.527 billion in commitments
Parliament: €194.282 billion in commitments
Final Agreement:
Commitments: €192.768 billion
Payments: €149.615 billion
The European Parliament is expected to formally adopt the budget in the coming weeks. Both the Parliament and the Council have 14 days to approve the agreement.
This marks the fifth annual budget under the 2021-2027 MFF, designed to address EU priorities and facilitate recovery from the COVID-19 pandemic under the NextGenerationEU framework.
The budget negotiations highlighted the balancing act required to address the EU’s financial needs while maintaining flexibility to adapt to future challenges.
Approval by the Council sets the stage for the European Parliament to finalize the 2025 budget, ensuring the EU remains equipped to meet its strategic goals amidst a complex economic and geopolitical landscape.
