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The Council and the European Parliament agreed on the EU’s annual budget for 2025 on 16 November 2024. While we wait for the final adoption, which is expected to arrive at the beginning of next week, it is interesting to compare 2024 and 2025 based on the 2025 budget as agreed between the Council and Parliament. In absolute terms, the percentage of the gross national income (GNI) of the EU27 should increase from 1.06% to 1.08%.

Among the headings, we can report the following shifts:

– Single market, innovation and digital stays approximately the same (from €21.49 to €21.48)
– Cohesion, resilience and values increased from €74.58 to €77.98
– Natural resources and environment decreased from €57.31 to €56.73
– Migration and border management increased from €3.89 to €4.79
– Security and defence and Neighbourhood and the world slightly decreased respectively, from €2.70 to €2.63, and from €16.73 to €16.31
– European public administration increased from €12.06 to €12.84
– Special instruments increased from €6.52 to €6.67

From the EU perspective, Péter Banai, Hungarian Minister of State and chief Council negotiator for the 2025 EU budget, commented “We have agreed on a balanced budget that gives us the means to deliver on the EU’s priority areas, while keeping the interest of taxpayers in mind. Next year’s budget ensures a prudent approach, keeping enough financial leeway to respond to unforeseen circumstances.”

As external observators, we can make the following considerations:

-Although the increase in the percentage of GNI  may seem modest, it reflects the EU’s commitment to sustaining its efforts, particularly in a global context that requires decisive actions.

-Significant increases in funding have been seen in the “Cohesion, resilience, and values” area, which is a strong indication that the EU is prioritizing internal cohesion, resilience, and common values. Another key area with a notable increase is “Migration and border management,” which responds to the mounting pressure on migration policies while ensuring the security of the EU’s external borders.

-However, areas such as “Natural resources and environment” have seen a slight reduction in funding. This reduction could raise concerns, considering the critical role of environmental policies in the EU’s agenda, particularly in achieving the green transition and climate goals.

-“Security and defence” also saw a slight decrease, as did “Neighbourhood and the world”. These reductions might seem counterintuitive, especially in a time of increasing global instability.

To conclude, a key challenge for the EU will be to balance between addressing internal and external emergencies while maintaining long-term goals like sustainability and security.

Written by: Cristina Ceccarelli