Changes from report parliamentary committee draft to plenary report

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

▸4 unchanged paragraphs

on the Council position on the draft general budget of the European Union for the financial year 2026 (11216/2025 – C10-0206/2025 – 2025/0210(BUD))

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,

Added– having regard to Article 2 of the Treaty on European Union, whereby gender equality is a core value of the Union,

Added– having regard to Article 8 of the Treaty on the Functioning of the European Union, whereby ‘in all its activities, the Union shall aim to eliminate inequalities and to promote equality’; whereas this applies including to all levels of the budgetary process,

▸14 unchanged paragraphs

– 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 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 declarations 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 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 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 its resolution of 2 April 2025 on general guidelines for the preparation of the 2026 Budget - Section III,

– having regard to its resolution 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 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 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 its resolution of 3 April 2025 on Parliament’s estimates of revenue and expenditure for the financial year 2026,

– 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,

Changed– 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,resources (IIA),

– 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,

Change 1

Added– having regard to Article 349 TFEU and to Regulation (EU) No 228/2013 of the European Parliament and of the Council of 11 March 2013 establishing specific measures for agriculture in favour of the outermost regions of the Union,

Added– having regard to the Interinstitutional Proclamation on the European Pillar of Social Rights of 13 December 2017 and to its resolution of 19 January 2017 thereon,

Added– having regard to Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law),

Added– having regards to the UN Sustainable Development Goals,

▸5 unchanged paragraphs

– 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),

Added– having regard to Protocol No 6 on the location of the seats of the institutions annexed to the Treaty on the Functioning of the European Union,

Added– having regard to the 2012 Joint Statement and ‘Common Approach’ on EU Decentralised Agencies,

▸5 unchanged paragraphs

– having regard to the draft general budget of the European Union for the 2026 financial year, which the Commission published on 9 July 2025 (COM(2025)0300),

– having regard to the position on the draft general budget of the European Union for the 2026 financial year, which the Council adopted on 5 September 2025 and forwarded to Parliament on 12 September 2025 (11216/2025 – C10-0206/2025),

– having regard to Rule 96 of its Rules of Procedure,

– having regard to the opinions of the Committee on Development, Committee on Economic and Monetary Affairs, Committee on Employment and Social Affairs, Committee on the Environment, Climate and Food Safety, Committee on Public Health, Committee on the Internal Market and Consumer Protection, Committee on Agriculture and Rural Development, Committee on Fisheries, Committee on Culture and Education,

– having regard to the letters from the Committee on Foreign Affairs, Committee on Security and Defence, Committee on Budgetary Control, Committee on Industry, Research and Energy, Committee on Transport and Tourism, Committee on Women’s Rights and Gender Equality,

Changed– having regard to the report of the Committee on Budgets (A100000/2025),(A10-0192/2025),

Section III – European Commission - Budget 2026: building a resilient, sustainable and prosperous future for Europe

Change 2

Changed1. Recalls that, in its resolution of 2 April 2025 on general guidelines for the preparation of the 2026 budget, Parliament set clear political priorities for the 2026 budget; reaffirms its strong commitment to those priorities and sets out the following position to ensure an appropriate level of financing to deliver on them within the current very tight budgetary constraints; believes that the Union must be equipped with all possible budgetary means to deliver on Union priorities and to foster a prosperous future for Europe;Europe and its people;

Change 3

Changed2. Stresses that, in times of uncertainties stemming from geopolitical instability and heightened security threats as well as the rise in global protectionism and the worsening costs and effects of climate change,change and biodiversity crisis as well as well as economic and social challenges threatening European people and societies, a reliable, results- and investment-oriented as well as sustainable Union budget remains instrumental for the implementation of the Union’s policies, including cohesion, to provide the people in the UnionUnion, who are facing increasingly high costs of living, with a robust ecosystem and to deliver on their priorities; including by exploiting to the fullest possible extent the prevention as well as the crisis response capacity of the Union budget; emphasises that the Union budget must maintain an adequate level of ambition for the prosecution of Union’s policy priorities and to leverage private investment,

Change 4

Changed3. Emphasises that Russia’s illegal and unjustifiable war of aggression against Ukraine has brought further substantial economic and social consequences for people across Europe, as well as worldwide, especially the most vulnerable, and in particular frontline countries and in Ukraine; recalls its unwavering support for the people in Ukraine and underlines the crucial role of common investment to maintaining a comprehensive and resolute response from the Union against unprecedented geopolitical challenges and newincluding hybrid security threats;

Change 5

Changed4. Underlines that while the MFF revision represented a clear improvement compared to the initial situation, the MFF was not established to address a pandemic, a war, high inflation, high energy prices, food insecurity,insecurity and ever worsening humanitarian crises;crises, and that while the MFF revision represented an improvement compared to the initial situation, it failed to address all the issues identified at the time of the mid-term revision; deplores that the Union budget is still under pressure, with limited margins and flexibility, and without sufficient ambition for current priorities and also in important future-oriented policy areas; regrets,deplores, that, despite the MFF revision, overall ceilings and margins are stillremain very low in the Financial Programming and the 2026 draft budget (DB), standing at zero in two headings (sub-heading 2b and Headingheading 7) and close to zero in two other headings (sub-heading 2a and Headingheading 5);

Change 6

Changed5. Considers that the Union budget, on account of its size, structure and rules, has a very limited capacity to respond appropriately in 2026 to the challenges facing the Union and has insufficient resources to adequately address the current economic, social, climate and environmental as well security challenges or to adequately finance and implement today’s priorities; recalls its long-standing position that new policy priorities or tasks should be accompanied by fresh money and that Union institutions and bodies, must be properly staffed and adequately resourced to fulfil their mandate and additional tasks; emphasises that all spending through the Union budget must be subject to parliamentary scrutiny;

Change 7

Removed6. Deplores that the Council, in its position which it calls “prudent”, proposes to cut commitment appropriations by EUR 1,3 billion across the MFF headings; stresses that, by applying such largely unjustified cuts across headings on programme lines to generate additional unallocated margins, the Council’s reading sticks to an approach that is not fit for purpose in times of crisis; underlines that this approach is not based in the reality of current budgetary needs, as these margins are not intended for use in the annual budget 2026; strongly opposes the Council cuts targeting programmes that benefit from the adjustment provided for in Article 5 of the MFF Regulation for “rebalancing and stabilisation”, since that would contradict the objective of that MFF provision, which was to strengthen specific political priorities; considers in addition that many of the budgetary cuts from important programmes such as Erasmus+ are made with the sole intention of repaying the NGEU interest costs cutting precisely from funding for the next generation that is supposed to benefit the most from such programmes;

Added6. Recalls the binding nature of Article 2 of the Treaty on European Union and of Regulation (EU, Euratom) 2020/2092 on the protection of the Union budget; reiterates that the allocation and implementation of Union funds under all programmes and budgetary headings shall take place only in full respect of democratic principles, transparency and fundamental rights; stresses in particular that Member States and beneficiaries must have effective mechanisms in place to prevent, detect and remedy conflicts of interest at all levels of management, control and decision-making relating to Union funds and that the Union budget must be protected from any forms of conflict of interest;

Added7. Deplores that the Council, in its position which it calls “prudent”, proposes to cut commitment appropriations by EUR 1,3 billion across the MFF headings; stresses that, by applying such largely unjustified cuts across headings on programme lines to generate additional unallocated margins, the Council’s reading sticks to an approach that is not fit for purpose in times of crisis and very volatile political, economic and international environment; underlines that this approach is not based in the reality of current budgetary needs; strongly opposes the Council cuts targeting programmes that benefit from the adjustment provided for in Article 5 of the MFF Regulation for “rebalancing and stabilisation”, since that would contradict the objective of that MFF provision, which was to strengthen specific political priorities; considers in addition that many of the budgetary cuts from important programmes such as Erasmus+ are made with the sole intention of repaying the NGEU interest costs cutting precisely from funding for the next generation of Europeans that is supposed to benefit the most from such programmes and which goes against the objectives of the EURI cascade mechanism to not cutting programmes;

Added8. Underscores that the 2026 budget must be aligned with the Union’s objectives and international commitments; stresses the need for continuous work to achieve the climate and biodiversity mainstreaming targets for Union budget spending laid down in the IIA, as part of the broader process of making the Union climate-neutral by 2050 at the latest; recalls the target for biodiversity spending of 10 % for the years 2026 and 2027 and the target for climate spending of 30 %; regrets that the biodiversity target will not be met in 2026; stresses, furthermore, that the Union budget should be implemented in line with Article 33(2) of the Financial Regulation, therefore without doing significant harm to the environmental objectives, where feasible and appropriate in accordance with the relevant sector-specific rules; recalls that all Union programmes, policies and activities should be implemented in a way that promotes gender equality in the delivery of their objectives; notes, in this regard, the Commission’s work, in accordance with the IIA, to track gender equality-related spending, in particular through an ex-post gender impact assessment and reporting on volumes;

Added9. Welcomes the Commission's new efforts to present more options for new sources of revenue for the Union budget; in this respect, takes note of the Commission’s proposal for a Council Decision on the System of Own Resources of the European Union of 16 July 2025; stresses that new genuine own resources are essential not only to enable repayment of NGEU borrowing, but to ensure that the Union is equipped to cover its higher spending needs; calls on the Council to speed up its work on the new own resources;

Added10. Recalls that the decentralised agencies play an important role in the implementation of the Union’s current priorities; emphasises that the agencies’ resources, including both budgetary and human resources must sufficiently reflect the tasks obligated upon the agencies in their basic acts, and in the extensions of their mandates;

Special instruments and cascade mechanism

Change 8

Changed7.11. Notes that the 2026 budget will be the second full annual budgetary procedure under the revised MFF ceilings and rules; reminds that a certain level of redeployments, in particular under Headingsheadings 1 and 6 was part of the MFF revision package; stresses its firm position to not see such reductions repeated or made worse in the annual procedure especially as resourcesmargins arehave becomingbecome extremely scarcetight in the last years of implementation of the current MFF;

Change 9

Changed8.12. Notes, further, that the initial 2026 availabilities for the Single Margin Instrument for commitments (Article 11(1)(a) of the MFF Regulation) stand at EUR 748,2 million and that the Commission proposes to exhaust the SMI compartment (a) for Headingheading 7 - European Public Administration; is concerned that as a result, a total amount of only EUR 132,5 million remains available for unforeseen expenditure in 2026, all of which under the Flexibility Instrument (assuming that no amount would still be mobilised in the course of 2025);

Change 10

Changed9.13. 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 Union budget; takes note with concern that the NGEU overrun costs, i.e. the needs for the EURI refinancing costs which have not yet been programmed,programmed from the outset, amount to approximately EUR 4,34,225 billion,billion for 2026, twice the Commission’s forecast, whileas specified in the Amending Letter 1/2026(AL) will1/2026; updatenotes that the needsCommission, estimationin forits 2026;DB notesand thatin AL 1/2026, following the Commission,outcome inof itsthe DB,conciliation 2025 applies a 50:50 approach to the cascade mechanism, covering an amount of EUR 2,12,113 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 73 million and by the Flexibility Instrument for an amount of EUR 2 065040 million, with the remaining half to be mobilised through the EURI instrument over and above the ceiling, covered by decommitments made since 2021;

Change 11

Changed10.14. DisagreesReiterates 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; strongly disagrees therefore with the Council’s approach to opt for what it calls “prudent” budgeting, creating artificial margins under the MFF ceilings;ceilings at the expense of the implementation of previously agreed Union’s priorities; regrets that the Council, in its position on the 2026 budget, and similar to previous years, reduces appropriations dedicated for EURI borrowing costs;costs without due justification; alerts that in order to create additional unallocated margins (mostly in sub-heading 2b 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 2026 as well as in 2027; stresses that the cuts in sub-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, CEFConnecting digitalEurope Facility (CEF) Digital and Erasmus, are well-established shared priorities for the European Parliament and the Council and flagship programmes of the Union; deplores furthermore 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, or lines that were topped up in previous years, such as Erasmus+, EU4Health or LIFE;

Change 12

Changed11.15. Recalls the Interinstitutionaljoint Agreementstatement to the IIA adopted as part of the 2020 MFF agreement, whereby expenditure to cover NGEU financing costs “shall aim at not reducing programmes and funds”; 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;

Change 13

Changed12.16. Is alarmedconcerned by the fact that part of the EURI financing needs in 2026 is in fact due to the liquidity management cost of 2025; further notes that, for the first time, liquidity management costs have increased significantly due to delays inand unpredictability of payment requests as some member states are slowing down the implementation of theirthe recovery and resilience plans;plans is slowing down in some Member States; underlines that the liquidity management costs are an additional burden in a context of extremely scarce resources; deploresstresses that the currently estimated liquidity management cost of EUR 300 million for 2026 would consume approximately half of the overall availabilities (including margins and special instruments) of the DB;DB without assurances that this is the most efficient and prudent way to manage the unpredictability of payment needs for the RRF; requests in this context that the liquidity management cost is isolated in a separate new budget line for transparency purposes; is of the strong opinionconsiders that this cost was never intended by the co-legislator to be included in the amounts subject to the 50 % benchmark within the cascade mechanism agreed during the MFF revision;revision and further clarified in the 2025 conciliation; argues therefore that it should be financed solely from the decommitment compartment of the EURI instrument;

Heading 1 - Single market, Innovation and Digital