The European Commission has put forward its draft EU annual budget for 2026. It builds on the mid-term revision of the EU’s long-term budget (2021-27) that addressed a series of unpredicted developments, including a global pandemic, an energy crisis and growing geopolitical tensions around the world. In line with this, the 2026 annual budget will support EU priorities such as support for Ukraine, competitiveness, migration management, security and defence, and strategic investments, as well as continued support for green and digital transitions. 

The draft 2026 budget is set at €193.26 billion, complemented by an estimated €105.32 billion under NextGenerationEU, the EU’s instrument to support Europe’s economic recovery from the coronavirus pandemic. This instrument helps build a post-COVID-19 EU that is greener, more digital, more resilient and better prepared for the current and forthcoming challenges. The centrepiece of NextGenerationEU is the Recovery and Resilience Facility (RRF) – an instrument for providing grants and loans to support reforms and investments in the EU Member States.

The 2026 draft budget aligns with the new Commission priorities by allocating funds to key flagship initiatives, including the Competitiveness Compass, the Clean Industrial Deal, the Union of Skills, and the EU Startup and Scaleup Strategy. It also introduces simplification measures through new Omnibus proposals, aiming to streamline EU funding and implementation processes.

The draft EU budget includes both the expenditure covered by the long-term budget ceilings, financed through the EU’s own resources, and additional spending under the NextGenerationEU instrument, which is financed through borrowing on the capital markets.

Among other policies, the 2026 annual budget will go towards: 

• single market, innovation and digital - €22,054.4 million
• cohesion, resilience and values - €71,726.1 million
• natural resources and environment - €56,971.9 million
• migration and border management - €5,010.0 million
• security and defence - €2,803.5 million
• neighbourhood and the world - €15,505.0 million 

The European Parliament and the Council must formally adopt the 2026 budget before year-end.