Changes from plenary report to plenary report

AddedAfter taking into account the above conclusions on agencies and pilot projects and preparatory actions, the Conciliation Committee has agreed on the following:

Removed16. Takes note that the climate mainstreaming target of 30% is projected to be met with 33.5% while the expenditure related to biodiversity is projected to be at 8.5% following the CAP revision so that the 10% target will not be met in 2026; welcomes the efforts for a more transparent and comprehensive reporting on the horizontal targets, and emphasises the need to carry out sufficient ex-post evaluations with a particular focus on impact;

AddedHeading 1 – Single Market, Innovation and Digital

Removed17. Reiterates that all Union programmes, policies and activities should be implemented in a way that promotes gender equality in the delivery of their objectives; welcomes that the Commission has further developed a methodology to track gender equality-related spending in the 2021-2027 MFF, which looks at policy design and resource allocation and in particular the presentation of an ex-post gender impact assessment on a more granular level and reporting on volumes; calls for an extension of the methodology to all MFF programmes in order to demonstrate results for the 2025 budget; stresses, in this regard, the need for systematic collection and analysis of gender-disaggregated data; at the same time notes that only EUR 17.9 million have been spent in the first three years of this MFF which resulted in a direct positive impact for women;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

RemovedSpecial Instruments and Cascade mechanism

AddedIn accordance with Article 15.3 of the Financial Regulation, the Conciliation Committee agrees to make commitment appropriations available again on the research budget lines for a total of EUR 115,9 million in commitment appropriations, i.e. an increase of EUR 20,0 million as compared to the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025. The following budget line is reinforced, and its budget remarks revised accordingly:

Removed18. Highlights that the 2025 annual budgetary procedure will be the first exercise based entirely on the MFF Revision; recalls that, according to the MFF Revision, the Flexibility Instrument has been reinforced and that a maximum allocation of EUR 1 546.1 billion to be mobilised in 2025 has been topped up by 495 million and amounts carried over from 2024; notes that the Commission proposes to use an amount of EUR 1 192.8 million under the Flexibility Instrument for the EURI cascade Step 2 but that the Council deviates from the Commission approach in several significant aspects;

AddedThese appropriations are part of the additional top-up to EUR 100 million (in 2018 prices) agreed in the context of the MFF revision. Including the original MFF agreement, this leaves up to EUR 152,6 million in 2018 prices available for the 2026-2027 period, of which EUR 62,6 million from the 2019 and 2020 de-commitments.

Removed19. Reiterates its position that before having recourse to the EURI special instrument, the budgetary authority is expected to examine the possibility for covering part of any shortfall within the headings and through the Flexibility and Single Margin Instruments; emphasises that this process must be objective and based on real needs and cannot be driven by any arbitrary benchmarks; intends, therefore, to ensure that all programmes are properly resourced and that the budget’s flexibility and response capacity is maintained throughout the annual budgetary procedure;

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 21 480,1 million, leaving a margin of EUR 115,9 million under the expenditure ceiling of heading 1.

Removed20. Notes, further, that the initial 2025 availabilities for the Single Margin Instrument for Commitments (Article 11(1)(a) of the MFF regulation) stand at EUR 1 124 million and that the Commission proposes to use EUR 490.4 million for heading 7 European Public Administration; resumes that as a result, a total amount of EUR 1 468.9 million remains available for unforeseen expenditure in 2025, of which an amount of EUR 835.1 million under the Flexibility Instrument and an amount of EUR 633.8 million under the Single Margin Instrument (assuming that the neither the Flexibility Instrument, nor the SMI are still mobilised in the course of 2024);

AddedSub-heading 2a – Economic, social and territorial Cohesion

Removed21. Highlights that the Commission’s DB estimates the EURI ‘overrun’ costs to amount to EUR 2,5 billion and applies a 50:50 approach to the cascade mechanism; notes that the Commission proposes, therefore, to cover an amount of EUR 1.24 billion from the budget - i.e. 50% of the cost overruns - stemming from the unallocated margin under sub-heading 2b for an amount of EUR 46.2 million and by the Flexibility Instrument for an amount of EUR 1 192.8 million, with the remaining half to be mobilised through the new EURI instrument over and above the ceiling, covered by de-commitments made since 2021; acknowledges that, therefore, under this scenario no recourse to the ‘back-stop’ is required;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

Removed22. Disagrees with the Council’s approach to opt for what it calls “prudent” budgeting, creating artificial margins under the MFF ceilings; notes that the Council, in its position on the 2025 budget, and similar to 2024, reduces appropriations dedicated for EURI borrowing costs; points out that the Council’s position to cover only around 35% of the overrun costs by the EURI Special Instrument runs counter to the 50:50 benchmark that the Council itself insisted on during the MFF negotiations; alerts that in order to finance the difference and create additional unallocated margins (mostly in H2b but also in other headings, presumably in view of using it in future years through the SMI), sizeable reductions to a number of flagship programme envelopes have been proposed that have repercussions in 2025 as well as in 2026 and 2027; stresses that the cuts in heading 2b are particularly disconcerting as the only motivation is to use the money for financing EURI to the detriment of the people-centred nature of the programmes anchored in the same heading as EURI; recalls that the most affected programmes, Horizon Europe, CEF digital and Erasmus, are well-established priorities for the European Parliament and flagship programmes of the Union; deplores that the Council targets for reductions are across several headings and even touch some programmes that were already subject to the MFF revision redeployments, such as Horizon, reduced by 400 million, or lines that were topped up in previous years, such as Erasmus+, reduced by 295 million, EU4Health or LIFE;

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 66 365,7 million, with no margin left under the expenditure ceiling of sub-heading 2a and the mobilisation of the Flexibility Instrument for an amount of EUR 4,7 million in accordance with Article 12 of the MFF Regulation.

Removed23. Recalls the Interinstitutional Agreement adopted as part of the 2020 MFF agreement, whereby expenditure to cover NGEU financing costs “shall aim at not reducing programmes and funds”; questions whether the Council’s approach is in line with the MFF agreement on the cascade; recalls that the EURI special instrument is to be mobilised in accordance with the MFF regulation, the applicable sectoral rules and other legal obligations and taking into account priorities, prudent budgeting and sound financial management, which require in particular appropriate margins for unforeseen expenditure;

AddedSub-heading 2b – Resilience and Values

Removed24. Restores, therefore, all the cuts proposed by Council to ensure that programmes are properly resourced and that the budget’s flexibility and response capacity are maintained throughout the annual budgetary procedure; insists on the need for the Commission to provide reliable, timely and accurate information on NGEU borrowing costs and on expected Recovery and Resilience Facility disbursements throughout the budgetary procedure; recalls that Parliament is deeply concerned about the impact of the inherent uncertainty for the EURI interest line and questions the forecast from the Commission on NGEU borrowing costs; welcomes the cut-off date of the end of September for the budgeting of the EURI costs which brings more predictability to the procedure; is aware that the Amending Letter 1/2025 will update the needs estimation for 2025; is adamant to cater fully and timely for the NGEU repayment costs that will fall due in 2025;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

Removed25. Underlines, once again, that repayment of the EURI borrowing costs is a legal obligation for the Union and a non-discretionary expenditure item in the EU budget; insists on transparency in the implementation of the cascade in the annual budgetary procedure and adds a remark in the budget, showing the share of de-commitment of appropriations, other than external assigned revenue, made since the beginning of the current MFF on the budget line; proposes to finance 65% of the overrun costs by the de-commitment compartment of the EURI Special Instrument; deems the margin of EUR 46.2 million, which was programmed before the DB was submitted, to be available for reinforcing programmes under the ceiling of Heading 2b; intends to revisit the amendments linked to the cascade mechanism once the Amending Letter provides updated estimations of the actual needs for the EURI line in 2025;

AddedFor Erasmus+, Article 07 03 03 Promoting learning mobility of sport coaches and staff, as well as cooperation, inclusion, creativity and innovation at the level of sport organisations and sport policies would allow a contribution to the financing of actions related to the next special Olympics. The Commission will monitor the needs of the line throughout the year.

RemovedHeading 1 - Single market, Innovation and Digital

AddedThe overall needs of the EURI interest line of EUR 2 283,2 million above the financial programming for 2025 are financed in part by the remaining margin under sub-Heading 2b of EUR 4,7 million and the mobilisation of EUR 1 136,8 million under the Flexibility Instrument, an overall amount of EUR 1 141,6 million corresponding to the benchmark of 50 % of the 2025 cost overrun. The remaining 50 %, i.e. EUR 1 141,6 million will be covered by the de-commitments made since 2021 in line with Article 10a para 3(a) of the MFF Regulation. The 50% benchmark will be targeted annually.

Removed26. Recalls that programmes under Heading 1 play a key role in increasing the Union’s competitiveness, driving growth, economic development and job creation as well as in ensuring that the green and digital transitions leave no-one behind; recalls, in this respect, that these programmes provide the necessary support for research and innovation in key sectors such as health, food, climate, natural resources, and agriculture, boost funding for cross-border infrastructure, in particular in the transport and energy sectors, bolster the Union’s investment in cutting-edge technology, thereby stimulating job creation and improve the competitiveness of the Union economy, with an emphasis on SMEs and youth entrepreneurship; underlines the importance of the EU research programmes for meeting the EU’s climate objectives and calls for special support to research projects on de-carbonisation;

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 11 614,4 million, with no margin left under the expenditure ceiling of sub-heading 2b and the mobilisation of the Flexibility Instrument for an amount of EUR 1 136,8 million in accordance with Article 12 of the MFF Regulation and the mobilisation of the EURI instrument for an amount of EUR 1 141,6 million in accordance with Article 10a para 3(a) of the MFF Regulation.

Removed27. Highlights the vital role that Horizon Europe plays in this context; recalls that the programme remains heavily over-subscribed and is therefore unable to support a large number of research projects evaluated as ‘excellent’; proposes, therefore, to increase allocations for the programme by a total of EUR 242 million compared to the DB, with reinforcements for the European Research Council, Marie Skłodowska-Curie Actions and Clusters ‘Health’, with the particular aim to reinforce the mental health research, ‘Culture’ ‘Climate, Energy and Mobility’, ‘Food’, EIC and ‘Widening participation’;

AddedHeading 3 – Natural Resources and Environment

Removed28. Proposes, moreover, to make available again EUR 180 million in research de-commitments under Article 15(3) of the Financial Regulation under Horizon Europe, EUR 60 million each in assigned revenue for the European Research Council, for Marie Skłodowska-Curie Actions and for European Innovation Council;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

Removed29. Recalls that the Connecting Europe Facility (CEF) is key for the Union’s overall security and for boosting investment in high-performance sustainable trans-European networks, and thereby promoting interconnectivity as well as for supporting the completion of TEN-T and the extension of corridors towards the partner countries in the Eastern Neighbourhood; in this sense, calls for more CEF Transport investments into the climate and environmentally friendly cross-border transport infrastructure, in particular with regard to rail projects and investment in clean mobility; calls, at the same time, on increasing the CEF Energy investments for deploying renewable energy, energy efficiency and other sustainable energy projects; highlights its vital importance to energy projects in Ukraine in light of the Russian war of aggression; proposes, therefore, to increase appropriations for CEF Transport by EUR 40 million above the DB in 2025 and CEF Energy by EUR 30 million above the DB in 2025;

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 56 731,3 million, leaving a margin of EUR 604,7 million under the expenditure ceiling of heading 3.

Removed30. Highlights the added value of the Digital Europe Programme in view the Union’s digital transition, technological progress and competitiveness and proposes an increase of EUR 10 million for the budget line Artificial Intelligence and EUR 5 million above the DB for the skills strand of the programme; points out that enhancing digital skills and literacy are imperative for empowering citizens to fully participate in the knowledge economy;

AddedHeading 4 – Migration and Border Management

Removed31. Stresses that a well-functioning Single Market is critical for the Union’s competitiveness and for enhancing access to markets for EU businesses, especially SMEs and young entrepreneurs; notes that SMEs in particular are the backbone of the European economy and that they have been hit hard by high inflation and energy prices; proposes, as a result, an increase of EUR 5 million above the DB for the SME strand of the Single Market programme, notably to support the European net-zero industry academies;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

Removed32. Further proposes a number of additional reinforcements for selected budget lines in Heading 1, among which InvestEU, the Anti-Fraud Programme, Space and Customs cooperation; commends the impact of Space Programme on the security of the Union by providing early warnings to the relevant authorities in times of crises, such as floods, through Copernicus and providing crucial navigation services to rescue and transport services through Galileo; underlines the increasing needs in investing in both Space programme strands in the future;

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 4 791,1 million, leaving a margin of EUR 79,9 million under the expenditure ceiling of heading 4.

Removed33. Reiterates the important role played by the decentralised agencies active under this heading; proposes to increase appropriations for the European Union Agency for Railways and for the BEREC Office in line with their identified needs and expanding mandates;

AddedHeading 5 – Security and Defence

Removed34. Reinforces Heading 1 by EUR 341 566 628 in commitment appropriations above the DB (excluding pilot projects and preparatory actions) and by EUR 984 803 912 compared to the Council reading;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

RemovedHeading 2a - Economic, social and territorial cohesion

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 2 632,6 million, with no margin left under the expenditure ceiling of heading 5 and the mobilisation of the Flexibility Instrument for an amount of EUR 15,6 million in accordance with Article 12 of the MFF Regulation.

Removed35. Underlines the key role cohesion policy plays in delivering on Union policy priorities, improving peoples’ quality of life and boosting the Union economy by contributing to fair, inclusive and sustainable growth and development, promoting economic and social convergence between countries and regions, notably outermost regions, addressing regional and social inequalities, supporting the green and digital transitions, and fostering innovation and employment; reiterates that cohesion policy is not a crisis response tool and, therefore, should not be called on to make up for shortcomings in budgetary flexibility or crisis response mechanisms to the detriment of its long-term policy objectives; calls on the Commission and all Member States to accelerate implementation of cohesion policy, in parallel to the implementation of the Recovery and Resilience Facility;

AddedHeading 6 – Neighbourhood and the World

Removed36. Recalls that the execution of operational programmes in the Member States and regions should be accelerated and calls on Member States to prevent delays caused by a lack of administrative capacity at all levels of governance; wishes to allocate the remaining margin of EUR 755 965 to the budget line for Operational technical assistance, to contribute towards accelerating implementation ;

AddedCommitment appropriations are set at the level proposed by the Commission in the Draft Budget but with the following adjustments, agreed by the Conciliation Committee, set out in the table below:

Removed37. Reinforces Heading 2a by EUR 755 965 in commitment appropriations, i.e. by the remaining margin under the sub-ceiling, above the DB (excluding pilot projects and preparatory actions) and by EUR 889 718 compared to the Council reading;

AddedAs a consequence, the agreed level of commitment appropriations is set at EUR 16 308,2 million, with no margin left under the expenditure ceiling of heading 6 and the mobilisation of the Flexibility Instrument for an amount of EUR 5,2 million in accordance with Article 12 of the MFF Regulation.

RemovedHeading 2b - Resilience and values

AddedHeading 7 – European Public Administration

Removed38. Underlines that the expenditure programmes under Heading 2b have to share the already tight resources and margins under Heading 2b with the EURI budget line which covers the NGEU debt management and interest costs and, eventually, debt repayments, and that this has de facto prevented the Commission from proposing reinforcements where they are needed; is intent on covering these borrowing costs in a reliable and transparent manner without having to reduce programme allocations for this purpose; is convinced that, for 2025, the cascade mechanism and the newly created EURI Special Instrument make it possible that this objective can be achieved; emphasises that this is a crucial message to the beneficiaries of EU funding and the public at large;

AddedThe number of posts in the establishment plans of the institutions and the appropriations proposed by the Commission in the Draft Budget, as amended by Amending Letter 1/2025 are agreed by the Conciliation Committee with the following exceptions:

Removed39. Stresses, in an effort to spare the programmes under this heading from undue budgetary rigidity, that it deems the margin of EUR 46.2 million to be available for the programme top-ups in Heading 2b; wishes the equivalent amount for the EURI cascade to be covered by the de-commitment compartment of the EURI special instrument;

Added The amendments introduced by the European Council to its own section and confirmed by the European Parliament in its reading are reinstated also making due consideration of the adjustments proposed in Amending Letter 1/2025. Overall, this results in three additional posts and a level of appropriations of EUR 715,9 million, which represents an increase of EUR 195 000 in comparison with the Draft Budget as amended by Amending Letter 1/2025;

Removed40. Recalls that programmes under Heading 2b play a key role in ensuring resilience and values by providing support and opportunities for young people through Erasmus+, including support to the Special Olympics World Games (SOWG) 2025, and through the European Solidarity Corps; emphasises that both programmes are required by law to put in place measures to boost participation rates among people with fewer opportunities and from disadvantaged backgrounds; calls for a readjustment of Erasmus+ grants to account for higher inflation and higher living costs; proposes to reinforce support for the Union Civil Protection Mechanism and the Citizens, Equality, Rights and Values programme, to invest in preventing cardiovascular diseases (CVD), cancer diseases, rare diseases and diseases affecting mental health, by increasing EU4Health, to invest in skills development, including through reskilling and upskilling, to ensure social security coordination in order to facilitate labour mobility and easier transfer of social security benefits and to support vulnerable communities, as well as rural, isolated, insular and mountainous areas, social dialogue, labour mobility, trade unions, and the cultural and creative sectors;

Added The section of the Court of Justice of the European Union for which two posts are added to the establishment plan and the level of commitment and payment appropriations increased by EUR 140 000;

Removed41. Is alarmed by the ever-growing impact of natural disasters; underlines that these disasters are often linked to the worsening climate change and are therefore likely to occur with greater frequency and intensity in the future; is, therefore, highly concerned about the Union’s ability to respond effectively and in a timely and effective manner; wishes to protect human lives and secure livelihoods; stresses the need to invest in climate mitigation and adaptation measures, in particular in vulnerable regions; stresses, in this context, the urgent need to boost the Union’s response capacity; increases, therefore, appropriations for the Union Civil Protection Mechanism by EUR 42 million above DB; calls for a prioritisation of investments that help reduce the impact of natural disasters as well as in the investments in the preventive measures, preparedness and resilience; stresses that the Union should find the resources to express solidarity by supporting the areas, citizens and companies affected by the recent devastating floods in Central and Eastern Europe in September 2024;