The Council and the European Parliament have agreed on the EU’s annual budget for 2026, set at €192.8 billion. It will focus on delivering Union priorities and dealing with ongoing challenges. The budget will boost competitiveness, strengthen Europe’s defence readiness and preparedness, provide support for humanitarian assistance and address migratory pressures. At the same time, it safeguards the flexibility to react quickly to unforeseen needs and crises. 

This budget forms part of the EU’s 2021–2027 Multiannual Financial Framework, a period marked by major unforeseen challenges such as the COVID-19 pandemic, the return of war in Europe, an energy crisis, and rising global geopolitical tensions. 2026 represents the last year in which significant payments will be made under NextGenerationEU, the EU’s post-pandemic economic recovery instrument.

In addition, the 2026 budget creates incentives and flexibilities for Member States to redirect Cohesion funding toward emerging priorities such as competitiveness, defence, affordable housing, water resilience and the energy transition. As Cohesion policy is the EU’s primary investment instrument for reducing regional disparities and fostering balanced development, this added flexibility will enable regions to target resources more effectively and accelerate payments to those receiving EU support.

Nicolai Wammen, Minister for Finance of Denmark and chief Council negotiator for the 2026 EU budget, shared: “Today’s agreement shows that Europe can deliver, even in challenging times. The 2026 EU budget will allow us to deliver on our common priorities – security, competitiveness and border control – all while ensuring that the EU can react swiftly and effectively to unforeseen needs and crises”.

The annual EU budget for 2026 allocates the following amounts to the various EU priorities:

• Single Market, Innovation and Digital: €22,163.0 million
• Cohesion, Resilience and Values: €71,649.8 million
• Natural Resources and Environment: €56,529.4 million
• Migration and Border Management: €5,018.9 million
• Security and Defence: €2,813.5 million
• Neighbourhood and the World: €15,600.0 million
• European Public Administration: €13,277.5 million
• Thematic Special Instruments: €5,715.9 million

Total Appropriations: €192.8 billion

The Council is expected to endorse the budget on 24 November. Adoption of the budget requires a qualified majority within the Council. Once approved, the budget will enter into force on 1 January 2026, directing EU spending during the second-to-last year of the current Multiannual Financial Framework.

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