What changed between the plenary report and the adopted text

29. Recalls that the rule of law is one of the founding values of the EU and that respect for the rule of law is an essential prerequisite for the sound financial management and effective use of EU funding; stresses that this is crucial for safeguarding citizens’ trust in the EU and for ensuring that EU funds deliver tangible benefits across all Member States; recalls that the Conditionality Regulation is a key tool for protecting the EU’s financial interests against breaches of the rule of law; highlights that the weakening of the independence and impartiality of public administration and undue concentration in procurement procedures, as well as attacks on the justice system, represent systemic rule of law risks that threaten sound financial management; recalls the obligation of Member States subject to measures under the Conditionality Regulation to continue to honour all commitments to final recipients and beneficiaries; calls on the Commission to do its utmost to protect the legitimate interests of final beneficiaries and to ensure that final beneficiaries can continue to benefit from EU funding; stresses that any measures should not weaken the application of the Conditionality Regulation;

30. Underlines that rule of law conditionality is a fundamental principle that must apply to all EU funds without exception, including performance-based instruments as well as funding provided under Article 122 TFEU, so that no EU expenditure escapes effective scrutiny; calls on the Commission to maintain consistency in the application of conditionality across all EU funding streams; insists that the measures required for the release of EU funding, as defined by the relevant decisions taken under the Common Provisions Regulation, the Recovery and Resilience Facility Regulation and the Conditionality Regulation, must be assessed coherently as an integral package and that no payments should be made while deficiencies persist or be the outcome of negotiations; emphasises that all decisions to fully or partially suspend EU funding must be based on clear, objective and transparent criteria and procedures; recalls its position that funds suspended in accordance with the Conditionality Regulation or on account of non-fulfilment of horizontal enabling conditions should not be eligible for programme amendments or transfers; insists that the decision to use decommitted funds that had been frozen due to rule of law breaches is a prerogative of the budgetary authority within the framework of the annual budgetary procedure and should not be left to the discretion of the Commission; strongly insists on the European Parliament’s right to full transparency and traceability of EU funds; reiterates its call for a single, integrated and interoperable information system to track financial flows;

Creating economic opportunities in the face of strategic challenges

31. Underlines the key role of the EU budget in delivering on the European Green Deal, achieving a successful digital transition, contributing to the objectives of the Competitiveness Compass and strengthening the Union’s economic and industrial sovereignty, as highlighted by the Draghi and Letta reports, especially as regards simplification and avoiding unnecessary administrative burdens; reiterates the Union’s commitment to meet the 2050 climate neutrality target by supporting investments in areas such as energy efficiency, renewable energy and resilient electricity grids, cross-border mobility, the circular economy, biodiversity protection, digital innovation and AI, and smart energy infrastructure; calls for adequate upskilling and reskilling programmes for workers, especially in regions dependent on carbon-intensive industries, and tailored support for SMEs, to ensure sustainable prosperity for Europe, safeguarding the just transition, industrial competitiveness and quality employment;

32. Further calls for sufficient funding for research, innovation and technological deployment, in particular in areas of strategic importance, to ensure that the EU remains agile and self-reliant in the face of global challenges, disruptions and volatility, strengthening the Union’s global leadership and reducing strategic dependencies; emphasises the role of InvestEU, through its budgetary guarantees and advisory services, the SME component of the Single Market Programme, and other instruments in leveraging the full potential of the EU’s cross-border dimension, facilitating the development of start-ups and scale-ups, reducing bureaucratic hurdles, simplifying application processes and improving access to finance; considers it essential that investments contribute to strengthening European value chains and developing industrial capacities, and that they reinforce the Union’s strategic autonomy by reducing dependence on third countries;

33. 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;

34. Emphasises that the EU budget for 2027 must act as an engine for completing a genuine energy union by bridging the investment gap of EUR 660 billion annually for energy-related investments, in particular in energy interconnections and in strategic technologies, ensuring that the transition away from Russian fossil fuels is translated into industrial leadership, economic resilience, strategic autonomy, notably for critical raw materials, and quality job creation; highlights the necessity to ensure the proper functioning and deeper integration of European energy markets through the modernisation of cross-border infrastructure; calls for continuous investment in critical infrastructure, low-carbon and renewable energy sources and energy efficiency, adapting European infrastructure to meet future energy demands, reducing dependencies and ensuring the Union’s open strategic autonomy and energy security;

36. Underlines that emerging instruments in the blue economy, as well as the European Ocean Pact, should receive sufficient funding from the EU and its Member States, but not at the expense of existing fisheries; stresses the strategic importance of fisheries and aquaculture and the need for adequate financial support; recognises that the common fisheries policy contributes to a stable income and long-term prospects for fishers, while protecting sustainable marine ecosystems, which underpin the sector’s competitiveness; calls for particular attention to be paid to the EU fishing fleet to improve safety and security, including by tackling illegal fishing and improving working conditions, energy efficiency and sustainability and allowing for the modernisation of the Union’s fleet and generational renewal;

37. Emphasises the urgent need to uphold fair living and working conditions for farmers, farmworkers and people employed in the fisheries and aquaculture sectors; outlines the importance of strengthening compliance with core EU labour standards, such as fair wages and safe working conditions, and calls for adequate resources to be mobilised to facilitate the implementation of this principle;

38. Is deeply concerned about the impacts of climate change and the biodiversity crisis both in Europe and globally; stresses that the cost of inaction is far higher than the investment needs, including with regard to climate mitigation, adaptation efforts and sustainable water management; stresses that investments in climate action should also contribute to the EU’s competitiveness and strategic autonomy; highlights, therefore, the constructive role played by the Programme for the Environment and Climate Action (LIFE programme); stresses that the LIFE programme has a cross-border nature and is directly managed by the Commission, which are imperative factors guaranteeing funding predictability for final beneficiaries and the successful implementation of projects; calls, therefore, for the 2027 budget to include ambitious funding for the LIFE programme in order to accelerate the shift towards a sustainable, climate-neutral and resilient economy, with a focus on projects that deliver clear added value and avoid duplication with national efforts;

39. Underlines the EU’s role as a hub for coordinating and improving the Member States’ preparedness and capabilities to respond immediately to large-scale, high-impact emergencies; calls for sufficient funding for the EU Civil Protection Mechanism, including the rescEU capacities, to support Member States quickly and effectively in overwhelming crisis situations; acknowledges that the EU Solidarity Fund or any other fund alone cannot fully compensate for the extreme weather events of increased frequency and severity caused by climate change today and in the future; stresses the need to invest in and prioritise preparedness, prevention and adaptation measures, including nature-based solutions;

40. Calls for the 2027 budget to provide for increased allocations for public investment in transport infrastructure, cross-regional transport networks and the promotion of public transport and sustainable mobility in order to enhance EU connectivity, support sustainable mobility and strengthen territorial cohesion;

42. Calls for the establishment of European Maritime Security and Defence Hubs in the Black Sea, North Sea, Baltic Sea and Mediterranean Sea in response to Russia’s war of aggression against Ukraine and geopolitical developments in the Mediterranean region and the Arctic; underlines that these hubs should enhance maritime situational awareness, enable real-time monitoring from space to seabed and strengthen early warning capacities and reactions to respond to the increased threats from the Russian shadow fleet, while ensuring the security of commercial routes;

43. Recalls that front-line Member States, in particular those that share a land border with Ukraine, the Russian Federation and/or Belarus in the Baltic region and Member States in eastern Europe, and vulnerable sectors of the economy, such as agriculture, infrastructure and military mobility, remain exposed to the consequences of the war in Ukraine; underlines that, in border regions, measures to mitigate economic and social impacts and to strengthen resilience should be prioritised alongside security needs, ensuring a balanced response based on solidarity, including targeted support for affected people and border municipalities facing added pressure on services and local economies, including pressure arising from demographic pressure and workforce shortages, building on the experience of rapid-response adjustment instruments; calls for the 2027 budget to provide adequate funding in this regard and ensure the continuity of support within the current MFF and to facilitate the early implementation of mature projects in the next long-term budget;

Global Europe: acting today, preparing for tomorrow

44. Stresses the urgent need for the EU to strengthen its common external policy and global influence, given the evolving geopolitical landscape, marked by shifts in US policy, Russia’s war against Ukraine and escalating global conflicts; points out the necessity for the EU to secure adequate funding and resources in the 2027 budget to effectively address issues in its neighbourhood and beyond; recalls the importance of an updated Strategic Compass and the crucial diplomatic role of the European Global Gateway; emphasises the EU’s responsibility to actively support democratic actors, civil society organisations and democratic institutions in partner countries, particularly in regions facing democratic backsliding;

45. Highlights the importance of enhancing the EU’s role as a leading humanitarian actor and calls for adequate funding for the humanitarian aid programme to address crises in regions affected by protracted conflict, displacement, food insecurity and natural disasters; stresses that this is especially urgent in the light of the sudden decline in international aid from other major donors, while acknowledging that the Union cannot shoulder this responsibility alone; welcomes the Commission’s efforts to ensure that EU external financing is aligned with the Union’s strategic priorities and values; calls on the Commission to ensure that EU programmes for development, humanitarian assistance and human rights support receive a substantial increase in funding; emphasises that the EU requires sufficient resources for long-term investments in building global partnerships, and points out the importance of the participation of non-EU countries in EU programmes, where appropriate; underlines the need for robust accountability, transparency and monitoring mechanisms to ensure the proper and intended use of EU funds in third countries; welcomes, in this context, the agreement on the participation of the United Kingdom in the Erasmus+ programme as of 2027; believes that making EU funding conditional on the achievement of country-specific milestones is an effective and appropriate tool for safeguarding the Union’s interests; considers that EU financing granted to third countries should not be subject to less stringent conditions than financing provided to Member States; calls for the strengthening of the Union’s ability to mobilise international partnerships based on shared values and interests;

46. Underlines that Russia’s illegal, unprovoked and unjustified war of aggression against Ukraine has profoundly altered the EU’s security environment; stresses the critical importance of the Internal Security Fund in addressing rising threats, such as increased levels of organised crime with a cross-border dimension and cybercrime; calls on the Member States to ensure consistent and complementary efforts in their defence investments;

48. Insists on the benefits of pre-accession funds, both for enlargement countries and for the EU itself, as they create more stability and enhance comprehensive convergence with the EU, including economic integration, social and environmental standards and shared democratic values; underlines the importance of sustained support for candidate countries in implementing necessary accession-related reforms, in particular regarding the rule of law, anti-corruption, democracy, economic resilience, and the prevention and countering of hybrid threats; stresses that the 2027 budget, as the final one of the current MFF, should ensure that the Instrument for Pre-accession Assistance (IPA) III and neighbourhood support are conditional on respect for European values such as the rule of law, the independence of the judiciary, the democratic process, respect for fundamental rights, and good neighbourly relations; stresses the need to strictly apply the conditionalities enshrined in the facilities; welcomes the implementation of the Growth Plan for the Western Balkans to further support the economic convergence of Western Balkan countries with the EU’s single market through investment and growth in the region; insists on the need to deploy the necessary funds to support Moldova’s accession process, in line with the EU’s commitment to enlargement and regional stability; underlines the importance of the Reform and Growth Facility for the Republic of Moldova and highlights the necessity of securing sufficient financial resources for its full and timely implementation; recalls that support for Georgian civil society should continue regardless of the current freezing of funding to the Georgian Government;

49. Underlines that the European neighbourhood policy, in particular its Eastern and Southern Partnerships, contributes to the overall goal of enhancing the stability, prosperity and resilience of the EU’s neighbours, thereby increasing the security of our continent; stresses, therefore, the importance of reinforcing the Southern and Eastern Neighbourhood budget lines in order to support political, economic and social reforms in those regions, facilitate peace processes and reconstruction, and provide assistance to refugees, in particular through continuous, reinforced and predictable funding for relevant actors and continuous implementation on the ground; calls for targeted and transparent use of funds, in line with the EU’s values and the relevant regulations and with strict conditionality to ensure real impact, enhance regional stability and prevent financial misuse or political backsliding; highlights the pressing need to provide additional humanitarian and economic assistance in Gaza, the West Bank, Jordan, Lebanon and Syria;

50. Calls for increased and targeted funding to promote cooperation with central Asian countries, given their strategic relevance for the EU;

51. Recalls that the EU must continue to address global crises and assist the most vulnerable populations around the world through its humanitarian aid programme, as well as maintain its global role through the Neighbourhood, Development and International Cooperation Instrument – Global Europe to tackle global challenges, promote human rights, freedoms and democracy, support the capacity building of civil society organisations and deliver on the EU’s international climate and biodiversity commitments, all within a comprehensive monitoring and control system; stresses that humanitarian and development aid should serve both urgent needs and long-term geopolitical objectives, while reinforcing partnerships with countries committed to reform and stability;

Cross-cutting issues in the 2027 budget

52. Is very concerned about the very limited level of availabilities in the 2027 budget in regard to the Union’s priorities and budgetary needs; asks in this respect for full use of the available decommitments in order to ensure a sufficient level of financing aiming at an effective implementation of programmes and priorities;

53. Underlines that the repayment of the borrowing costs of the European Union Recovery Instrument is a legal obligation for the EU and therefore non-discretionary; notes that 31 December 2026 is the deadline for payments to be made to Member States under the NGEU; underlines the importance of ensuring that the implementation of the Recovery and Resilience Facility delivers its full impact by prioritising mature and well-advanced projects that contribute to EU resilience and strategic autonomy; notes, furthermore, that borrowing costs will depend on the pace of disbursements under the Recovery and Resilience Facility in 2026 and on market fluctuations in bond yields, and are therefore inherently unpredictable and volatile;

54. Takes note of the Commission’s forecasts that interest costs in 2027 could reach EUR 10 billion, exceeding the financial programming of EUR 4.98 billion by over EUR 5 billion; is extremely concerned about the pressure that this will put on the 2027 budget; recalls that Parliament, the Commission and the Council agreed that expenditure covering the financing costs of the NGEU must not reduce the number of EU programmes and their respective funding; is firmly committed to ensuring that all programmes are properly resourced and that the budget’s flexibility and response capacity is maintained throughout the annual budgetary procedure; insists, furthermore, 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, as well as on liquidity management costs and available decommitments; expects the Commission to update the decommitments forecast when presenting the draft budget;

55. Underlines the importance of providing sufficient payment appropriations in the 2027 budget; notes that programme implementation has reached cruising speed, with payment execution peaking in rural development programmes, leading to significantly higher payment needs in 2025 than initially estimated; recalls that several regulatory changes, such as the mid-term review of cohesion policy, provided for the front-loading of payments in the 2024-2026 budgets; notes, however, that uncertainties remain regarding Member States’ actual uptake of these new possibilities; highlights the ongoing trend of increasing inaccuracy in Member States’ payment forecasts; calls on the Commission to closely monitor payment developments and to provide timely information to Parliament in order to avoid any risk of payments backlog;

56. Notes with concern the high level of RAL due to expected substantial payments on these commitments from the 2021-2027 MFF and prior MFFs; calls on the Commission and the Member States to boost the implementation of all EU programmes in 2027, in particular by accelerating mature and demand-driven projects, in order to decrease the level of RAL to be carried over to the next MFF; calls on the Commission to prevent an ‘absorption at any cost’ approach in the final year of the MFF, including the financing of low added-value projects, and stresses that efforts to reduce the RAL must fully respect sound financial management principles; urges the Commission to increase technical assistance and other measures to Member States to support an increased absorption of funds;

57. Stresses that sufficient own resources are essential not only to enable the repayment of NGEU borrowing, but also to ensure that the EU is equipped to cover increasing investment needs, as highlighted by the Draghi and Letta reports and the Niinistö report, and to respond to unforeseen developments; reiterates the need for revenues that ensure budgetary and fiscal stability while being able to respond to the Union’s needs and priorities; is highly concerned by the complete lack of progress on the introduction of new own resources in the Council; calls on the Council and the Member States to proceed with the introduction of new own resources as a matter of urgency and without further delay;

58. Highlights the key role of the EU’s bodies and decentralised agencies in implementing EU priorities; emphasises that effective programme execution, as well as quality legislation and proper implementation of EU policies and programmes, including proper monitoring and enforcement, depend on adequately funded and staffed EU bodies and decentralised agencies; calls for the 2027 budget to provide funding and staffing that reflect the evolving mandates of EU bodies and agencies and to address backlogs from prior budgets, particularly regarding the cybersecurity requirements of the Regulation for Cybersecurity of EU Institutions, which have been exacerbated by past inflation; recalls its long-standing position that new tasks and new responsibilities must be proportionately accompanied by fresh resources;

59. Stresses the need for continuous efforts towards the achievement of the climate and biodiversity mainstreaming targets laid down in the Interinstitutional Agreement of 16 December 2020 in the Union budget 2027 and the European Recovery Instrument expenditures; recalls that the do-no-significant-harm principle is mainstreamed in all Union activities through the budgetary implementation as agreed in the Interinstitutional Agreement;

60. Stresses the need for measures to address gender disparities and promote equal opportunities across and through all EU funding programmes in the delivery of their objectives; takes note of the Commission’s work on developing a gender mainstreaming methodology in the current MFF;

62. Considers it essential for the Union’s stability and progress and for its citizens’ trust to ensure the proper use of EU funds and to take all steps towards protecting the Union’s financial interests; recalls that, in accordance with the Financial Regulation, when implementing the budget, Member States and the Commission must ensure compliance with the Charter of Fundamental Rights and must respect the EU’s values enshrined in Article 2 TEU, namely respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities; underlines, in particular, Articles 137, 138 and 158 of the Financial Regulation and recalls the obligation of the Commission and the Member States to exclude from EU funds any persons or entities found guilty by a final judgment of terrorist offences, terrorist activities, or inciting, aiding, abetting or attempting to commit such offences, as well as corruption, organised crime or other serious offences;

63. Underlines the essential role of the Union Anti-Fraud Programme, the European Public Prosecutor’s Office, in close cooperation with the European Anti-Fraud Office, and other relevant EU and national authorities, in tackling cross-border fraud and corruption and ensuring accountability for the misuse of EU funds; highlights the need to leverage efforts in tackling fraud both at EU and Member State level and to this end ensure appropriate financial and human resources covering the Union’s full anti-fraud architecture; recalls the importance of providing the Union Anti-Fraud Programme with sufficient financial resources in the 2027 budget;

64. Asks the Commission to provide timely updates on any developments that may affect the overall level of availabilities, including those related to agricultural expenditure, salary update assumptions, NGEU debt servicing and liquidity management costs, financial instrument reflows, decommitments, or any other relevant estimates, as well as the financial impacts of the Ukraine loan support;

65. Insists on full transparency and timely, unrestricted access to all budgetary information and underlying documents, including detailed financial data and supporting records, in order to enable Parliament to exercise effectively its budgetary prerogatives under the Treaties; stresses that such access must be granted by the Commission without undue delay or limitation, and recalls that the provision of complete and accurate budgetary documentation is an essential precondition for democratic accountability, sound financial management and the proper functioning of the Union’s institutional balance;

66. Expects the Commission to take due account of and act promptly on the requests and priorities expressed by Parliament in the present resolution; underlines its determination to make full use of the budgetary instruments at its disposal;

°

° °

67. Instructs its President to forward this resolution to the Council, the Commission and the Court of Auditors.