The European Commission has proposed a budget of around €200 billion for the EU in 2025, supplemented by €72 billion raised in the post-COVID recovery plan, NextGenerationEU. This aims to fund EU priorities and help tackle current and future challenges. The Commission’s proposal will be debated and adopted by the European Parliament and the Council of the EU.
What is the EU budget?
The EU budget enables EU countries to achieve more together than they could alone, such as funding infrastructure projects or responding to crises. By pooling resources, uniting and supporting all EU countries, their citizens and beyond, the EU budget strengthens Europe’s economy and geopolitical position.
The EU’s long-term budget sets out spending priorities and limits for several years. Each year, the annual budget is negotiated and adopted within these limits.
The EU budget is primarily funded by a share of each EU member state’s gross national income, customs duties on imports from outside the EU, a share of the value-added tax levied by each EU country, and contributions based on the amount of unrecycled plastic packaging waste in each EU country.
Where is the money going?
Funds from the 2025 Budget will be used where they can make the most difference, based on the needs of EU countries and EU partners around the world. The money will boost the green and digital transition, create jobs, fund EU support for Ukraine, and help address the migration challenge and the Middle East crisis. It will also boost capacity to respond to natural disasters and fund support for critical technologies. In addition, the budget will fund all ongoing EU projects and policies in various areas, including agriculture, regional development, research and innovation, climate action, defence, health, security and satellite infrastructure.
For more information
Press release regarding the FY2025 Budget Proposal
EU annual budget for 2025
EU budget benefits
How the EU budget is adopted, spent and funded
Recovery funds for your country or region
Next Generation EU
