Changes from plenary report to adopted text

The European Parliament,

– having regard to Article 314 of the Treaty on the Functioning of the European Union (TFEU),

– having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

– having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027 and to the joint declaration agreed between Parliament, the Council and the Commission in this context and the related unilateral declarations,

– having regard to Council Regulation (EU, Euratom) 2022/2496 of 15 December 2022 amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027,

– having regard to the Council Regulation (EU, Euratom) 2024/765 amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027 (MFF Revision),

– having regard to its position of 16 December 2020 on the draft Council regulation laying down the multiannual financial framework for the years 2021 to 2027,

– having regard to its resolution of 15 December 2022 on upscaling the 2021-2027 multiannual financial framework: a resilient EU budget fit for new challenges,

– having regard to its resolution of 3 October 2023 on the proposal for a mid-term revision of the multiannual financial framework 2021-2027,

– having regard to its resolution of 27 February 2024 on the draft Council regulation amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027,

– having regard to Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom,

– having regard to the Commission proposal of 22 December 2021 for a Council decision amending Decision (EU, Euratom) 2020/2053 on the system of own resources of the European Union (COM(2021)0570) and its position of 23 November 2022 on the proposal,

– having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast) (the Financial Regulation),

– having regard to Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’),

– having regard to the EU’s obligations under the Paris Agreement and its commitments under the Kunming-Montreal Global Biodiversity Framework,

– having regard to the EU gender equality strategy 2020-2025,

– having regard to its resolution of 10 May 2023 on the impact on the 2024 EU budget of increasing European Union Recovery Instrument borrowing costs,

– having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget,

– having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources,

– having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights of 13 December 2017,

– having regard to the general budget of the European Union for the financial year 2025 and the joint statements agreed between Parliament, the Council and the Commission annexed hereto,

– having regard to Enrico Letta’s report entitled ‘Much more than a market’, presented in the European Parliament on 21 October 2024,

– having regard to Mario Draghi’s report entitled ‘The future of European competitiveness’, presented in the European Parliament on 17 September 2024,

– having regard to Sauli Niinistö’s report entitled ‘Safer together – Strengthening Europe’s civilian and military preparedness and readiness’, presented in the European Parliament on 14 November 2024,

– having regard to the presentation of the EU Competitiveness Compass by Commission President Ursula von der Leyen on 29 January 2025,

– having regard to the joint white paper of 19 March 2025 for European Defence Readiness providing a framework for the ReArm Europe plan (JOIN(2025)0120),

– having regard to the Commission communication of 26 February 2025 entitled ‘The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation’ (COM(2025)0085),

– having regard to the proposal of the European Parliament and of the Council of 26 February 2025 amending Regulations (EU) 2015/1017, (EU) 2021/523, (EU) 2021/695 and (EU) 2021/1153 as regards increasing the efficiency of the EU guarantee under Regulation (EU) 2021/523 and simplifying reporting requirements (COM(2025)0084),

– having regard to the Council conclusions of 18 February 2025 on the budget guidelines for 2026,

– having regard to Rule 95 of its Rules of Procedure,

– having regard to the opinions of the Committee on Foreign Affairs, the Committee on Transport and Tourism, the Committee on Regional Development and the Committee on Agriculture and Rural Development,

– having regard to the letters from the Committee on Budgetary Control, the Committee on the Environment, Climate and Food Safety, the Committee on Industry, Research and Energy, the Committee on Culture and Education and the Committee on Constitutional Affairs,

– having regard to the report of the Committee on Budgets (A10-0042/2025),

Budget 2026: building a resilient, sustainable and prosperous future for Europe

1. Highlights the anticipated economic growth projected for 2025 and 2026 within the EU, accompanied by an easing of inflation; notes nonetheless the uncertainties stemming from Russia’s war of aggression against Ukraine, which directly threatens the security of the EU, and the worsening effects of climate change and the biodiversity crisis, also manifested in the increasing frequency and intensity of natural disasters, which are compounded by new significant geopolitical changes and a deteriorating international rules-based order, heightened security threats and a rise in global protectionism; emphasises that, in such an increasingly volatile landscape, it is imperative for the EU to enhance its defence and security capabilities, social, economic and territorial cohesion and political and strategic autonomy, decrease its dependence, increase its competitiveness and ensure a prosperous future for the continent and its people, who are currently facing an increasingly high cost of living;

2. Is determined to ensure that the 2026 budget, by focusing on strategic preparedness and security, economic competitiveness and resilience, sustainability, climate, as well as strengthening the single market, provides the people in the EU with a robust ecosystem and delivers on their priorities, thus reinforcing a socially just and prosperous Europe; underlines the need for additional investment in security and defence, research, innovation, small and medium-sized enterprises (SMEs), health, energy, migration, as well as land and maritime border protection, inclusive digital and green transitions, job creation, and the provision of opportunities for young people; insists that this be accompanied by administrative simplification, as indicated in the Competitiveness Compass; insists that the EU budget is the largest investment instrument with leverage effect, complementing national budgets and therefore enabling the EU to navigate the complexities of a rapidly changing world while ensuring prosperity, social cohesion and stability for its people; is strongly of the opinion that the EU should use this leverage effect to the maximum degree to boost the Union’s objectives and policymaking, as well as private investment;

Investing in a solid, sustainable and resilient economy

3. Is adamant that sound economic resilience and sustainability can be achieved in the EU by boosting public and private investment, increasing innovation and supporting competitiveness, including by addressing the skills gap and fostering more industrial production in Europe as a source for robust economic growth and quality jobs, and thereby guaranteeing the Union’s strategic autonomy, ensuring that the EU remains agile and self-reliant in the face of global challenges, disruptions and volatility; highlights the need to promote innovation, prioritise education, reduce costs and the administrative burden, and strengthen the single market, particularly as regards services;

4. Reaffirms, in this regard, that research and innovation remain crucial for the EU’s success in cutting-edge industries and new clean and sustainable technologies; recalls the long-standing goal of increasing research and innovation investment to 3 % of gross domestic product (GDP); calls, therefore, for increased funding to be provided under Horizon Europe to fund at least 50 % of all excellent proposals in all scientific disciplines, enable researchers as well as companies, especially SMEs, to bring new developments to the market, and to scale up, ensure solid economic growth and boost the Union’s competitiveness in the global economy, thereby preventing actors from leaving for competing regions while also ensuring that Europe has the knowledge base it needs to pursue the Green Deal commitments;

5. Highlights the importance of targeted support in encouraging public-private partnerships and accessible and increased financing to support SMEs as the backbone of the European economy and a vector for pioneering innovation, emphasising the role of the European Innovation Council, InvestEU and the SME component of the single market programme in empowering start-ups and scale-ups of innovative companies, supporting them in their growth and contributing to a greater role for the EU economy on the global stage; expresses its concern that, according to the interim evaluation of InvestEU, envelopes for many financial products may run out by the end of 2025 without budgetary reinforcements; takes note of the Commission proposal in this regard; underlines, furthermore, the importance of the single market programme to leverage the full potential of the EU’s cross-border dimension;

6. Stresses that the modernisation of the economy will require blending public and private investment; emphasises, in this regard, the necessity of private investments to maximise the leverage effect of public spending; recalls that these efforts should lead to simplification and reduce the financial burden for the EU’s SMEs while maintaining EU standards;

7. Underscores the urgency of further accelerating the digital and green transitions as catalysts for a future-oriented and resource-efficient economy that remains attractive for innovative businesses and that is based on market-driven investments providing quality jobs and leaving no one behind; advocates substantial investment in forward-looking digital infrastructure, underpinned by well-regulated, human-centred and trustworthy artificial intelligence and cybersecurity; stresses the need to improve citizens’ basic digital skills to match the needs of companies and to equip citizens to counter disinformation; stresses, further, the need to increase the resilience of the Union’s democracy in fighting malign foreign interference;

8. Recognises the strategic value of the Trans-European Transport Network (TEN-T) and the Connecting Europe Facility (CEF) for contributing to the economic, social and climate goals of the EU’s cross-border transport infrastructure; calls for network extensions, particularly towards candidate countries and the EU’s strategic partners, as regards the EU’s sustainable and smart mobility strategy and the complementarities between the TEN-T and the Trans-European Networks for Energy (TEN-E);

A better-prepared Union, capable of effectively responding to crises

9. Underlines the need to enhance EU security and defence capabilities to create a genuine defence union and to better prepare for and respond to unprecedented geopolitical challenges and new hybrid security threats; stresses the essential role of common investment, research, production and procurement mechanisms, including in new disruptive technologies supporting an independent EU defence industry; considers that there is an EU added value in security and defence cooperation that not only makes Europe and its people safer but also leads to greater efficiency, potential savings, quality job creation and enhanced strategic autonomy; calls therefore for immediate upscaling and much better coordination of defence spending by Member States; stresses in particular the need to provide adequate resources to innovate and enhance Member States’ military capabilities, as well as their interoperability; takes note, in line with the Commission’s ‘ReArm Europe’ plan, of its call for the European Investment Bank (EIB) and other international financial institutions and private banks in Europe to invest more actively in the European defence industry while safeguarding their operations and financing capacity; recalls the importance of investing in and developing dual-use equipment and, particularly, of strengthening EU military mobility as regards funding dual-use transport infrastructure along priority axes; calls on the Commission to assess the possibility of using calls for this purpose under the CEF transport programme, in the light of the military mobility funding gap; underlines the urgent need to strengthen the EU’s cybersecurity capabilities to fight hybrid warfare;

10. Recalls the role of the EU’s space programme in enhancing the strategic security of the Union through a variety of civil and military applications; underlines that a strong European space sector is fundamental for European security, open strategic autonomy, secure connectivity, the protection of critical infrastructure and advancing the twin green and digital transitions, and therefore requires sufficient resources;