Category: Banking

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

OPINION OF THE COMMITTEE ON FOREIGN AFFAIRS (20.2.2025)

for the Committee on Budgets

on guidelines for the 2026 budget – Section III

(2024/2110(BUI))

Rapporteur for opinion: Michael Gahler

OPINION

The Committee on Foreign Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Welcomes the fact that the multiannual financial framework (MFF) revision in 2024 provided for additional funding under Heading 6 and for the EUR 50 billion Ukraine Facility; deplores, however, the fact that the MFF revision fell short of the needs identified by Parliament; reiterates the urgent need to increase funding, particularly in crisis-affected regions where the needs are greatest, and to address the various challenges in the neighbourhood, invest in partnerships and strengthen the geopolitical position of the EU; underlines in particular the need for continued efforts to finance Ukraine’s immediate funding needs; emphasises that the EU should without any delay intensify its efforts to enable frozen and immobilised Russian assets to be used for Ukraine’s reconstruction, reparations and budgetary needs, in full compliance with EU and international law; underlines that the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI – Global Europe) and the Global Gateway are crucial instruments within the Union’s external action toolbox; stresses the importance of the EU’s humanitarian aid policies and instruments; calls in general for a more strategic and impactful approach to EU funding abroad while advancing open strategic autonomy;

2. Reiterates that an increased level of funding should be allocated for the Southern Neighbourhood in 2025 to support political, economic and social reforms in the region; highlights in particular the pressing need to contribute significantly to the reconstruction of Gaza and to provide additional humanitarian aid in Gaza, Lebanon and Syria; recalls that the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNWRA) has up to now been the principal humanitarian assistance structure in Gaza and the West Bank as well as an essential service provider in the region; recalls the need to continue supporting key regional partners such as Jordan in order to foster peace in the region;

3. Welcomes the new Reform and Growth Facility for the Western Balkans and the proposed Facility for Moldova, as well as the role of the Instrument for Pre-accession Assistance (IPA) III in financing actions in the region; underlines that the Reform Agendas, which beneficiaries need to develop, are a promising instrument to speed up transformation and compliance with EU norms; calls on the Commission, in the interests of a successful accession process, to strictly apply the conditionalities enshrined in the two facilities; calls furthermore on the Commission to accompany all 10 enlargement countries on their path to European integration and to provide tailored assistance to address their respective challenges; calls on the Commission to allocate additional funding to support civil society and independent media organisations and journalists; calls on the Commission to ensure that it retains the possibility to withhold funds, either temporarily or indefinitely, if those funds would contribute to the budgets of governments – whether at the national or sub-national level – whose actions are significantly undermining the stability of the country or its neighbours, or the country’s progress towards European integration, particularly regarding democracy, the rule of law and the protection of human rights and fundamental freedoms; calls, furthermore, on the Commission to present a proposal for an instrument for pre-accession assistance for the next MFF that incorporates the facilities to avoid overlaps and covers all 10 enlargement countries and which should ensure strong institutional and economic preparedness for EU membership; calls also on the Commission to speed up the integration of all candidate countries in the EU roaming area;

4. Highlights the importance of the EU’s ensuring that EU funds do not go towards financing educational literature that romanticises martyrdom, violence or terrorism;

5. Underlines the need for the Directorate-General for Enlargement and the Eastern Neighbourhood (DG ENEST), the Directorate-General for the Middle East, North Africa and the Gulf (DG MENA) and the European External Action Service (EEAS) to be provided with sufficient financial and human resources to promote peace, prosperity, security and EU values and interests in both the European neighbourhood and across the globe; underlines the need to provide adequate resources to both the EEAS and the Commission for strategic communication and to counter disinformation; highlights the need to maintain the current structure of the network of EU delegations around the world and to provide financing that is commensurate with the role that the Union expects all delegations to play on the ground; notes, furthermore, that the EEAS, with 145 delegations around the globe, cannot be measured according to the same logic as that applied to European institutions in Brussels and Luxembourg; calls, therefore, on the Commission and the Council not to apply the 2 % logic to the EEAS; insists on a budgetary increase for common foreign and security policy (CFSP) actions and common security and defence policy (CSDP) missions, as well as other appropriate peace, conflict and crisis response instruments; stresses the need to improve IT and security protocols within EEAS headquarters, EU Delegations and in Commission directorates-general with responsibilities in EU External Action; stresses the importance of investing in European security and defence by bolstering the Union’s strategic autonomy and collective defence capabilities;

6. Welcomes the establishment of the EU Partnership Mission in Moldova (EUPM Moldova); highlights the essential role of the EUPM Moldova and calls on the EU and its Member States to extend the mission’s mandate beyond May 2025, while increasing resources to enhance its effectiveness;

7. Reiterates the EU’s commitment to promoting gender equality and the empowerment of women globally, as enshrined in the EU Gender Action Plan III (2021–2025); calls for increased resources to support women’s rights, including efforts to eliminate gender-based violence, strengthen women’s participation in decision-making processes and promote economic empowerment; emphasises the importance of gender mainstreaming across all budgetary and policy initiatives to ensure equal opportunities and inclusivity; stresses that gender equality is not only a fundamental right but also a crucial driver of social and economic development;

8. Calls on the Commission to collaborate with the EPLO office in Washington, D.C., and the EU delegation in the United States to identify, fund and implement initiatives aimed at strengthening the transatlantic relationship, including exchange programmes for professionals working in public institutions in both the EU and the United States;

9. Underlines that any disbursements from the European budget must depend on the beneficiary country’s respect for the rule of law, human rights and compliance with international obligations, and with respect for international agreements;

10. Considers that more EU funds need to be allocated to joint cyber defence in order to counter the digital threats from Russia, the People’s Republic of China and others; considers that the Commission needs to secure the necessary funding for a future cyber army that can help EU institutions and Member States to defend themselves against cyberattacks from hostile states;

11. Stresses the need for the visibility and communication of EU aid, particularly in candidate countries, but also in other partner countries;

12. Stresses the urgent need for the EU to invest in research and development concerning low-cost drones, not only in order to support Ukraine in its efforts to defend itself against Russia, but also to strengthen European defence; considers that the EU should cooperate with Ukraine on the development of a drone system following their successful use of drones.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols:

+ : in favour

– : against

0 : abstention

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM (19.2.2025)

for the Committee on Budgets

on general guidelines for the preparation of the 2026 budget, Section III – Commission

(2024/2110(BUI))

Rapporteur for opinion: Gheorghe Falcă

OPINION

The Committee on Transport and Tourism calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

A. whereas the Connecting Europe Facility for Transport (CEF-T) has been a highly successful EU instrument for strategic investment in the development of the Trans-European Transport Network (TEN-T), aimed at transforming the EU’s roads, railways, ports, inland waterways and airways into a connected, safe, efficient, sustainable and competitive transport system; whereas the completion deadlines of 2030 for the core network, 2040 for the extended core network and 2050 for the comprehensive network are binding on the Member States and often require massive and sustained infrastructure investments; whereas the CEF-T should remain an important transport funding instrument in the 2028-2034 multiannual financial framework (MFF);

B. whereas modern, interconnected and multimodal transport infrastructure within a single European transport area is central to creating growth and jobs in the EU, completing the European single market and ensuring territorial cohesion, including for the benefit of peripheral, rural, mountainous, island and outermost regions and other geographically disadvantaged areas; whereas the Draghi and Letta reports call on the EU to step up its efforts to develop a competitive industrial strategy in the face of global competition; whereas successful decarbonisation that safeguards the global competitiveness of European industries requires significant investment in renewable-energy-based transport networks and alternative fuel infrastructure for sustainable transport; whereas digitalisation across all transport sectors can yield significant efficiency gains, which often have the potential to exceed the initial investments; whereas sufficient investment is required to achieve this and other technological solutions to enhance interoperability between digital, energy and transport networks and to maximise network benefits; whereas increased investment in road safety is necessary to achieve the goals of the EU’s Vision Zero strategy and ensure the safety of roads and road users; whereas the transport sector faces labour and skills shortages, combined with sometimes poor working conditions;

C. whereas the efficient use of EU funds is paramount to achieving strategic objectives within limited financial envelopes, particularly in the light of inflationary pressures that have led to significant increases in construction, energy and raw material costs, threatening the financial feasibility of key infrastructure projects of common European interest; whereas resilient and coordinated EU funding mechanisms are vital for maintaining project momentum despite economic volatility; whereas the imperative of maximising the impact of EU spending requires inflation-adjusted budgetary provisions, the reallocation of underutilised funds, as well as clear monitoring and improved reporting frameworks;

D. whereas delays in planning, permitting and procurement processes also hinder the timely implementation of transport and infrastructure projects, jeopardising EU transport and infrastructure development; whereas establishing optimised approval procedures is crucial to accelerating project timelines and ensuring budget absorption;

E. whereas, as envisaged under the Omnibus simplification package outlined by the Commission in its Competitiveness Compass, reducing regulatory and administrative burdens and simplifying implementation are key to ensuring equal access to funding for small and medium-sized enterprises (SMEs), regional authorities and disadvantaged regions; whereas the simplification of EU regulatory and administrative processes at all levels, coupled with streamlined access to funding, are essential for achieving the timely and efficient implementation of projects under CEF-T and tourism programmes, particularly for SMEs and regional authorities;

F. whereas the action plan on military mobility 2.0 outlines ambitious EU-level initiatives; whereas, however, inadequate funding remains a significant obstacle to their effective implementation;

G. whereas Russia’s war of aggression against Ukraine, like the COVID-19 pandemic, has underscored the vulnerability of the EU’s transport and tourism sectors to external shocks; whereas it is more necessary now than ever before to strengthen transport connections with Ukraine and Moldova; whereas the EU-Ukraine road transport agreement, which facilitates road freight transport and transit by setting up solidarity corridors, has been extended until 30 June 2025, with the possibility of tacit renewal for a further six months; whereas the European transport network is critical infrastructure facing increasing digital and/or physical security risks and needs to be protected from external threats to maintain the societal functions for which it is vital;

H. whereas tourism, a major economic activity accounting for almost 10 % of the EU’s GDP and identified in the Commission’s 2021 industrial strategy as a critical ecosystem for the EU’s economy and for employment, continues to face economic, environmental, employment-related and digital challenges;

1. Calls for a significant increase in the CEF-T budget to secure adequate funding for ongoing and planned TEN-T projects, focusing on cross-border infrastructure with the highest added value for the EU and on the elimination of bottlenecks and missing links, including within Member States, in order to enhance passenger and freight flow throughout Europe; underlines, furthermore, the value of smaller-scale projects in improving cross-border connectivity and their eligibility for EU funding;

2. Welcomes the Commission’s announcement that it will develop an EU industrial action plan for the automotive sector, as proposed in the Draghi report, and calls for swift progress in the ongoing strategic dialogue;

3. Welcomes the Commission’s announcement that it will develop a new maritime industrial strategy to enhance the competitiveness, sustainability and resilience of the European maritime manufacturing sector; appreciates the Commission’s announcement that it would present a European port strategy to limit the risks of economic dependence, espionage and sabotage linked to the economic presence and operational involvement of entities from non-EU countries in EU ports;

4. Calls, further, for a strategic action plan for the EU aviation sector to identify potential reductions in administrative burdens and to assess financial needs for maintaining the sector’s competitiveness in the face of decarbonisation pressures and the associated risks, including an uneven playing field and carbon leakage, and geopolitical challenges, and with regard to a cross-country analysis of working conditions as a determinant in attracting and retaining skilled workers and boosting productivity;

5. Welcomes the commitment to put forward a plan to develop an ambitious European high-speed rail network to help connect EU capitals, including through night trains, and to accelerate rail freight, as well as to set up a single digital ticketing and booking system for railways as soon as possible, as already outlined in the revised TEN-T guidelines; underlines the need for ambitious support for the deployment of the European Rail Traffic Management System (ERTMS);

6. Advocates a comprehensive strategy on hyperloop, with clear timelines, detailed investment frameworks and support for research, development and deployment;

7. Welcomes, in this respect, the Commission’s announcement under the Competitiveness Compass presenting a sustainable transport investment plan and calls on the Commission to define financing measures for the above-mentioned strategies and action plans, including by de-risking the investment needed to swiftly ramp up charging infrastructure as well as for the production and distribution of renewable and low-carbon transport fuels, without jeopardising existing market choices;

8. Underlines again the role of the Social Climate Fund in supporting investment for an inclusive transition towards more sustainable mobility and calls on the Member States to address transport poverty with specific policies and financing measures in their national Social Climate Plans;

9. Highlights the need to address the shortage of qualified labour, women’s employment and an ageing workforce in the transport sector; calls, in this regard, for sufficient support for the safety and good working conditions of transport workers as well as for the funding of safe and secure truck parking areas across the EU;

10. Calls for the digitalisation of transport through intelligent solutions and digital booking platforms to facilitate seamless cross-border travel; calls for the systematic reduction of EU regulatory burdens across all transport modes to free up resources, including EU budgetary means, for increased investment in transport infrastructure; underlines the strong need for prior impact assessments of all new legislative initiatives with respect to their budgetary implications but also the regulatory or administrative burdens that the proposals would create or resolve;

11. Calls on the Commission to address inflationary pressures and resource scarcity by incorporating inflation adjustments into the budget; notes that the inclusion of realistic price adjustments is essential to safeguarding the viability of transport and infrastructure projects against the impact of inflation-induced cost increases; supports the reallocation of unused funds to strategic clusters, such as transport infrastructure, sustainable transport solutions and innovation; calls strongly for the integration of inflation-resilient frameworks and adaptive budget mechanisms within the MFF to avoid financing challenges in upcoming cycles;

12. Emphasises the importance of bolstering co-financing mechanisms, particularly for large-scale projects such as the Clean Aviation, Single European Sky ATM Research (SESAR) and Europe’s Rail Joint Undertakings, to ensure their timely implementation despite economic constraints; insists on the leveraging of public-private partnerships (PPPs) to mobilise additional resources;

13. Advocates innovative financing models, in particular the facilitation of PPPs by providing guarantees or implementing risk-sharing mechanisms, in order to attract private investment in transport and tourism infrastructure, including for a faster transition to alternative fuels; stresses that these PPPs can also contribute to knowledge-sharing, innovation and support for SMEs and start-ups;

14. Stresses the need to reinforce the budgets of transport agencies, in particular the EU Aviation Safety Agency, the European Maritime Safety Agency, and the EU Agency for Railways, so that they can fulfil the additional tasks assigned to them by the co-legislators in recently adopted EU legislation, as well as in order to support critical safety, sustainability, interoperability, competitiveness, innovation and modernisation initiatives;

15. Calls resolutely for the streamlining of application and reporting procedures in relation to EU funds in line with Directive 2021/1187[26]; insists on transparent and fair allocation of EU transport funding using digital platforms in order to simplify access for SMEs and regional stakeholders; calls for the establishment of expedited review processes for critical transport and infrastructure projects in order to reduce delays; proposes the implementation of the ‘once-only’ principle for administrative processes, allowing applicants to provide information once and reuse it across EU programmes, thus reducing redundancy and delays, including for the increased blending of EU funds;

16. Insists on the restoration of the military mobility budget to the originally proposed EUR 6.5 billion over seven years; reiterates that the drastic cut of 75 % to military mobility funding within the transport pillar considerably weakens this policy; highlights the critical role of that funding in adapting parts of the TEN-T infrastructure for dual use along priority axes, in order to facilitate the short-notice, large-scale movement of military equipment and humanitarian aid across the continent, enabling a joint response to military threats to the EU Member States and their allied nations; calls for military mobility to be included in the white paper on the future of European defence;

17. Reiterates that, to help Ukraine withstand Russia’s war of aggression and to accelerate its post-war recovery and integration into the EU market, alongside the upcoming decisions on the renewal of the EU-Ukraine road transport agreement, it is imperative to pursue projects to improve the capacity along the EU-Ukraine Solidarity Lanes, encompassing railway upgrades, improved border crossings and the crucial step of integrating relevant lines of Ukraine’s rail system into the EU’s standard gauge to facilitate the uninterrupted movement of goods and services; considers that the 2026 budget should also help alleviate the economic and social hardship faced by the people of the EU’s eastern border regions, especially the Baltic states, Finland, Poland and Romania, who have been particularly affected by economic losses and the suspension of cross-border mobility as a consequence of Russia’s war of aggression against Ukraine; calls for the financing of further EU measures against the Russian shadow fleet;

18. Reiterates its repeated request to create a specific EU programme and a dedicated budget line for tourism in the current MFF and beyond, increasing the sector’s resistance to economic shocks and contributing to further growth and jobs across the value chain, bringing significant benefits and long-term well-being to local people and their businesses; highlights the need to reduce administrative burdens for SMEs operating in the tourism sector by simplifying rules, minimising data collection requirements, where appropriate, and providing tailored financial support; notes that the tourism sector stands to benefit greatly from digital innovations, such as smart tourism platforms and integrated digital ticketing systems for attractions and services, which enhance visitor experiences while driving significant economic growth for local communities; stresses that the further development of sustainable tourism, including through the promotion of regional products to strengthen local value chains or the management of tourist flows, could foster economic growth in less popular, more remote and peripheral areas, improve urban-rural connectivity and bolster the climate resilience of EU territories.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL
BY THE COMMITTEE ASKED FOR OPINION

Key to symbols:

+ : in favour

– : against

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OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT (19.2.2025)

for the Committee on Budgets

on general guidelines for the preparation of the 2026 budget – Section III – Commission

(2024/2110(BUI))

Rapporteur for opinion: Gabriella Gerzsenyi

OPINION

The Committee on Regional Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

A. whereas pursuant to Article 174 of the Treaty on the Functioning of the European Union (TFEU), ‘in order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least-favoured regions’;

B. whereas cohesion policy is a key instrument for reducing disparities between the levels of development of the various regions within the Union and for addressing the fact that the least-favoured regions lag behind, playing a vital role in promoting sustainable development and also addressing environmental challenges, complementing national budgets and enhancing the EU’s ability to navigate global complexities;

C. whereas among the regions concerned, particular attention must be paid to rural areas, areas affected by the industrial and automotive transitions, less-developed areas inside the so-called developed regions, eastern EU regions bordering on Russia, Belarus or Ukraine, regions which suffer from severe and permanent natural or demographic handicaps, as well as outermost regions, islands and Mediterranean regions facing environmental and economic vulnerabilities;

D. whereas the absorption rate of cohesion policy funds remains very low partly owing to delays to the start of programmes and the high level of bureaucracy and complexity required in cohesion-funded projects, which can lead to unforced errors;

E. whereas among the beneficiaries concerned, particular attention should be paid to vulnerable people, such as persons with disabilities;

1. Considers that, as the EU’s main long-term investment instrument, cohesion policy is based on solidarity, creates sustainable growth and jobs across the Union and contributes to key Union objectives and priorities, including its climate, energy and biodiversity targets, competitiveness, as well as sustainable and socially inclusive economic growth, to tackle demographic challenges and ensure equitable access to affordable housing;

2. Recalls that cohesion policy has proven to be a helpful tool in tackling challenges in various crises, such as the Russian war of aggression against Ukraine and its effects on the energy supply, the high cost of living, inflation, and the needs of refugees and displaced persons, as well as natural disasters; underlines, however, that the resulting legislative amendments to cohesion policy have repeatedly brought unexpected changes to its objectives and resources, while cohesion policy should, when needed, complement rather than replace other financial instruments designed for emergency response;

3. Reiterates the need for coordination at budgetary level between all the financial instruments supporting cohesion policy; believes that, to make the most of NextGenerationEU funds, these should support and complement cohesion policy measures;

4. Emphasises the need to ensure that the ‘do no harm to cohesion’ principle is observed across the EU budget; stresses, in this regard, that cohesion policy should not undergo any fundamental changes which could jeopardise the structural and investment funds’ ability to deliver on their goals; stresses that the setting of new priorities should entail new resources and underlines that the long-term investment objectives of cohesion policy are to reduce regional disparities and enhance competitiveness;

5. Is concerned about the state of implementation of cohesion policy programmes for 2021-2027; urges the Commission to step up monitoring efforts, ensuring respect for the rule of law, a transparent, fair and responsible use of EU resources, as well as their sound financial management; urges the Commission to strengthen its cooperation with the Member State authorities at all levels in order to reduce bureaucracy to make cohesion funds more accessible to local and regional authorities, among others, and to avoid decommitments, unfinished projects and any political manipulation of fund allocation; stresses, therefore, the need to introduce a ‘smart conditionality’ mechanism;

6. Notes that the Just Transition Fund needs adequate financial resources and a long-term perspective to ensure its effectiveness in supporting regions’ transition towards climate neutrality, while ensuring that the most vulnerable regions are properly supported in the transition process; emphasises the need for a realistic and balanced approach to the just transition, ensuring economic, social and environmental sustainability, with the meaningful participation of local and regional authorities, as well as economic and social partners;

7. Calls for further simplification of cohesion policy to reduce the growing administrative burden, enhance fund accessibility and ensure investments tailored to the specific needs of regions while enabling the effective management of funds in line with the needs of final beneficiaries; highlights, in this context, the importance of the newly-created EU Councillors network, which is jointly run by the European Committee of the Regions and the European Commission, as a key tool for strengthening the ability to gather evidence of how the Union operates at local level;

8. Underlines that rural areas are a core part of Europe’s identity and economic potential; welcomes cohesion policy measures that recognise the contribution of more prosperous and resilient rural areas to Europe’s overall resilience; calls for adequate funding to enhance their role in environmental protection, food production, tourism and ensuring ‘the right to stay’; calls for increased public investment to tackle demographic challenges and support young people by improving services and infrastructure, expanding access to digital education, technologies and innovations, so as to raise living standards, increase the stock of affordable housing and foster equal access for citizens and families to culture and high quality education, essential social services and other public services, while making more efficient use of resources, reducing the impact on the environment and creating new opportunities for rural SMEs;

9. Notes that the European Regional Development Fund (ERDF) and the Cohesion Fund support investments in sustainable urban development, underlining its importance as a key component of integrated territorial development, with at least 8 % of ERDF resources at the national level being allocated to urban areas through the relevant mechanisms; further notes that this should include special attention to the sustainable development of functional urban and metropolitan areas, facilitating the digital, green and industrial transitions;

10. Calls for increased investment in digitalisation and innovation to enhance the competitiveness of SMEs in less-developed regions, including rural and peripheral areas, in order to bridge the digital divide and foster inclusive economic growth;

11. Underlines that sustainable development is directly linked to having a highly skilled work force; insists, therefore, on the need for increased efforts to ensure an adequate degree of upskilling and reskilling of all relevant working age individuals, as well as initiatives to increase citizens’ acceptance of the economic, industrial and energy transitions;

12. Recalls the importance of mechanisms and strategies adapted to the diversity of the EU’s territories, and therefore calls for a full use of Article 349 TFEU to adapt cohesion policy to the specificities of the outermost regions; reiterates that the outermost regions should receive specific additional allocations to offset the extra costs incurred as a result of permanent constraints on their development; calls for an Islands Pact to be considered by the EU institutions with the participation of the principal stakeholders, along the lines of the Urban Pact and the future Rural Pact;

13. Reaffirms the need for close cooperation between national, regional, local and other authorities as well as their dialogue with civil society organisations and all relevant stakeholders, including economic and social partners, universities and innovation centres; recognises the importance of research and innovation policy in driving economic growth and enhancing competitiveness in order to fulfil cohesion policy objectives; highlights the need to support the commercialisation and scaling up of interregional innovation projects, underlining the importance of developing value chains, particularly in less-developed regions;

14. Reiterates the need to strengthen the administrative capabilities and capacity of local, regional and national authorities, which are key components in the effective planning and implementation of initiatives and projects at the local level; highlights the importance of stronger ownership, responsibility, partnership and decentralisation; strongly considers that increased financial resources dedicated to technical assistance are key to effective project implementation;

15. Emphasises that the implementation of cohesion policy must respect horizontal principles, including its place-based nature, multilevel governance, sustainability, the partnership principle, gender equality and non-discrimination, ensuring that all projects contribute to a more equitable and inclusive Union;

16. Stresses the need to strengthen awareness-raising among European citizens about cohesion policy achievements and calls for further information measures promoting it such as accessible data platforms, as cohesion policy is a particularly effective means of promoting strong and balanced European regions.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under her exclusive responsibility that she did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

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OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT (19.2.2025)

for the Committee on Budgets

on guidelines for the 2026 budget – Section III

(2024/2110(BUI))

Rapporteur for opinion: Dario Nardella

OPINION

The Committee on Agriculture and Rural Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

1. Highlights the crucial role of agricultural and rural development policies, particularly the common agricultural policy (CAP), in achieving the Union’s objectives under Article 39 of the Treaty on the Functioning of the European Union; highlights the fact that these policies are tools for farmers to provide safe, healthy, affordable and sustainable food of high quality, while ensuring fair and viable incomes for all farmers, in particular active, small-scale and young farmers, including targeting to prevent land abandonment and promoting short food supply chains; underlines that these policies aim to foster sustainable food systems and secure the long-term viability, profitability, sustainability and safety of EU agricultural production, the development of rural areas and the Union’s food sovereignty, while taking into consideration animal welfare standards, climate protection, mitigation and biodiversity measures; recalls, in this regard, that the strong and simplified EU financial support for a competitive and sustainable farming sector should be increased in the 2026 CAP budget allocation to better reflect the growing challenges in rural areas, including depopulation, and keep rural areas alive; underlines that, according to the latest Eurobarometer survey, support for the CAP has reached an all-time high, with over 70 % of respondents agreeing that the CAP fulfils its role in providing safe, healthy and sustainable food of high quality;

2. Notes that spending under the CAP significantly exceeds the climate and biodiversity mainstreaming targets and requests that this surplus be used to allocate funds that directly contribute to achieving the primary objectives of the CAP;

3. Calls on the Commission to secure additional funding for further nature objectives rather than relying on the CAP, which must above all remain a fund that ensures food security and a viable income for our farmers;

4. Upholds the promotion of EU agricultural products as a cornerstone of agricultural policy, with the aim of strengthening the competitiveness and relevance of all production sectors, especially that of wine and high-quality products, which need to have better access to both internal and external markets so as to promote diversification and internationalisation; recalls the success achieved by such promotion programmes in the opening up and consolidation of new markets; stresses the need to ensure an adequate promotion-policy budget in the coming financial years;

5. Stresses the need for a stronger, better equipped, flexible and more reactive agricultural reserve, with adequate funding to cope with market imbalances or unpredictable external factors, such as extreme and recurring weather events, animal diseases, water stress or an evolving geopolitical context, which are having an increasing impact on agricultural production and markets, farmers’ incomes, farm continuity and food security; calls on the Commission to make use of the crisis reserve in the most efficient, expeditious and transparent way; stresses the need to simplify administrative procedures in order to guarantee the swift disbursement of that aid; points out that an increase in the agricultural reserve must not affect direct payments; calls on the Commission to develop a comprehensive crisis management strategy for each major agricultural sector, ensuring the rapid and effective deployment of the crisis reserve, while considering the establishment of new crisis and risk management instruments; acknowledges though that the agricultural reserve alone cannot fully compensate for the increasing frequency and severity of extreme weather events caused by climate change; stresses the need to fund preventive mitigation and adaptation measures that enhance the resilience, including climate resilience, of rural areas and food production systems;

6. Strongly opposes any proposals to reduce the level of pre-allocated funds from the CAP in the future budget; points out that those funds should be increased by at least the equivalent of cumulative inflation since the start of the current budget period in order to avoid hidden reductions in CAP funding; stresses that farmers need the continuity and predictability of the CAP and that emerging new priorities cannot lead to cuts to the CAP budget; advocates for transparency and accountability in the allocation of CAP funds and encourages Member States and the Commission to enhance cooperation and strengthen anti-fraud measures; stresses the need for a fair distribution of CAP support between and within Member States; calls on the Commission to mobilise funds outside the CAP, given the challenges facing EU agriculture and to simplify the administrative procedures for farmers who receive aid; insists that any revenue accruing to the Union budget from assigned revenue or repayments of irregularities relating to agriculture should remain under the agriculture component of Heading 3 of the multiannual financial framework (MFF);

7. Underlines that CAP simplification measures adopted in 2024 must be the starting point for the next CAP reform;

8. Recalls that innovation can play a key role in enhancing the productivity, competitiveness, resilience and adaptability of agriculture; underlines, in this regard, the importance of increasing funding for research, thereby avoiding additional bureaucracy, both in the future budget allocations in the framework of the Horizon Europe research programme, as well as in the CAP, while creating funding mechanisms that ensure the continuity of existing and successful agri-food projects, established and funded through the NextGenerationEU instrument; calls therefore for adequate funding for climate change mitigation, precision agriculture, circular economy projects, renewable energy production in rural areas, development and technology-neutral innovation, including for projects promoting animal and plant health and the efficient use of resources, such as water, in agriculture; notes that production efficiency may also be an aim in itself, and that such funding should, in addition to improving the competitiveness of the agricultural sector, increase its resilience to challenges such as climate change and the spread of animal diseases; stresses the importance of ensuring adequate resources for training and knowledge exchange through European instruments, such as the Agricultural Knowledge and Innovation Systems;

9. Highlights the fact that digitalisation is a crucial tool in the development and enhancement of the value of rural areas, including inner areas, and plays a key role in addressing depopulation and attracting young people to these areas; welcomes the digital transformation in agriculture and rural areas, including its use in irrigation, to improve the efficiency, environmental, social and economic sustainability, traceability and precision of agricultural systems, ensuring more effective use of the EU’s budgetary resources and promoting entrepreneurship in rural areas, thus making them more attractive to people and businesses; calls on the Commission and the Member States, in this context, to strengthen the technological and communications infrastructure in rural areas, including broadband internet coverage, and encourages them to leverage technologies to enhance access to critical information and digitalise administrative processes for CAP support so as to reduce the bureaucratic burden and enable more efficient access to support and services; recalls that the uptake of innovative digital technologies requires sufficient funding, as well as targeted training, education and support programmes for farmers, particularly for small-scale and older farmers, to ensure equitable and affordable access to digital tools;

10. Notes with concern the continuing loss of farms and farmers, which has a significant socio-economic impact on rural areas; urges, therefore, the EU institutions and Member States to address labour and skills shortages by stepping up their efforts to promote generational renewal in the agricultural sector and rural areas, including in outermost regions and inner areas; highlights the importance of improving the profitability of the agricultural sector by enhancing fiscal and support measures that make farming activities more attractive and by improving access to land, financing and insurance, particularly for women, families involved in small-scale farming, marginalised groups and first-time farmers, such as young people; underlines that young farmers have the potential to be a driving force in sustainable and climate-friendly farming and highlights the need to empower them, including through the use of Union funds and adapted advisory and training tools; underlines that building and modernising rural infrastructure improves the quality of life in rural areas, which is essential for generational renewal; proposes, in this context, the inclusion of a specific indicator in future policies to monitor the rate of generational renewal and the level of services and infrastructure in rural areas;

11. Calls for EU programmes to prioritise projects that safeguard existing jobs in the agricultural sector and promote the creation of quality employment; stresses that all jobs in the agricultural sector must respect workers’ rights, provide stable and regulated pay, and ensure good working conditions; emphasises the importance of effectively combating poverty and social exclusion in rural areas;

12. Recalls the challenges that the agri-food sector has faced and is facing, such as the COVID-19 crisis, the harmful effects of the Russian invasion of Ukraine, natural disasters and rising input costs; regrets that direct payments and CAP subsidies have decreased significantly in real terms due to inflation, resulting in difficulties in implementing rural development measures, while the administrative burden on farmers has increased due to the accumulation of bureaucracy; calls on the Commission to allocate adequate resources to help farmers cope with those inflationary effects, including fuel costs, and underscores that the 2 % deflator of the current MFF does not compensate for the loss of value resulting from inflation; asks the Commission to provide a more flexible deflator in the next MFF and, furthermore, to work closely with the Member States to implement best practices at national and European levels to help farmers cope with inflation and record costs;

13. Requests that, following the repeated economic crises and extreme weather events caused by climate change that have affected agricultural companies, the unspent resources of the 2014-2022 rural development plans be spent by 31 December 2026 as a derogation from the N+3 rules laid down in Article 38 of Regulation (EU) No 1306/2013[27];

14. Welcomes the decision of the European Investment Bank to identify agriculture and the bio-economy as key priorities in its 2024-2027 Strategic Roadmap;

15. Expresses its concern about the adverse effects on the European agri-food sector of political instability in certain Member States and at global level, as well as of geopolitical tensions related to trade or international crises; underlines that the signing of the Mercosur Agreement in December 2024 will have implications for Union farmers and producers; invites the Commission to improve trade agreements to protect EU farmers, to ensure fair competition and a level playing field, and to allocate sufficient funds to mitigate the negative effects of trade agreements on the agricultural sector; recalls that European farmers may face unfair competition from third country producers who do not meet the same production standards as those in the EU and calls therefore for a proper level of reciprocity; reiterates the negative cascade effects of Russia’s war of aggression against Ukraine on global food security and farmers’ livelihoods; highlights the need to make sure that the reform of the Association Agreement between the EU and Ukraine provides stability and protection for EU farmers; highlights the need to start better preparation for an enlargement of the Union, taking account of European farmers’ interests, especially with regard to the adoption of balanced and enhanced measures to safeguard the European agricultural sector, while also ensuring support for Ukraine;

16. Calls on the Commission to encourage Member States to revise their national strategic plans, including the rapid use of funds from the European Agricultural Fund for Rural Development, and to provide funding to strengthen the relative negotiating positions of farmers in value chains, and for the Commission to swiftly approve these modifications;

17. Stresses the vital importance of the programme of options specifically relating to remoteness and insularity (POSEI) for maintaining agricultural activity in the outermost regions of Europe, for the provision of food and agricultural products there and for the food sovereignty of the EU as a whole; calls for the budget of the scheme, which has not been increased since 2013, to be increased to reflect the real needs of farmers in the outermost regions, as farmers in those areas are facing higher production costs; calls therefore on the Commission to apply without delay a 2 % deflator to the POSEI financial envelopes in order to mitigate the substantial losses for producers in real terms and ensure fairer support for all farmers;

18. Urges the Commission to ensure adequate resources for the implementation of an EU water management strategy and to continue developing water collection, storage and distribution activities, while preserving the status of water bodies, in order to render the use of water reserves more efficient in agriculture, both in crop irrigation and livestock farming, given that droughts are becoming increasingly severe across the Union.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

Key to symbols:

+ : in favour

– : against

0 : abstention

LETTER OF THE COMMITTEE ON BUDGETARY CONTROL (18.2.2025)

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Guidelines for the 2026 Budget – Section III (2024/2110(BUI))

Dear Mr Van Overtveldt,

Under the procedure referred to above, the Committee on Budgetary Control has been asked to submit an opinion to your committee. At its meeting of 18 February 2025, the committee decided to send the opinion in the form of a letter.

Yours sincerely,

Niclas Herbst

CONT Chair

Rapporteur for the Commission Discharge

OPINION

1. Recalls its strong commitment to the fundamental principles and values enshrined in the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU);

2. Stresses the fundamental importance of respect for the rule of law to protect the financial interests of the Union in the implementation of EU funds; recalls the improvements needed in the application of the Rule of law Conditionality Regulation and a swifter follow-up by the Commission on breaches of the rule of law principles that affect or risk affecting the EU financial interests, including the Single Market dimension, as for example procurement and state aid;

3. Stresses that the sound and timely implementation of the budget contributes to addressing more efficiently and effectively the needs and challenges faced by the Union and its citizens in different policy areas; warns that the implementation of the budget under time pressure may lead to an increase in errors and irregularities;

4. Recalls that for the last years all available flexibility measures in the EU Budget were used; reiterates the need for flexibility in the EU Budget to address potential new circumstances where EU action is necessary; notes that increasingly the headroom in the EU Budget is used to provide funding to respond to crises; notes in addition, that exposure of the EU Budget to guarantees and contingent liabilities is projected to rise in the coming years, putting additional strain on the headroom in the Budget which further limits the flexibility of the EU Budget, as are the increased interest payments for NGEU related borrowing; urges the Commission to work on a more stringent risk assessment framework to define the exposure more accurately to prevent over-burdening of the EU Budget;

5. Stresses the need to protect the EU Budget from any misuse, particularly fraud and corruption, and calls on the Commission to continue to be vigilant and proactive in the current and future cases when the lack of respect for Union values and the Rule of Law affect or threaten to affect the Union’s financial interests;

6. Stresses the importance of the EU anti-fraud architecture and the need to provide increased resources and to strengthen the role of the European anti-fraud office (OLAF), the European Public Prosecutor’s Office (EPPO), the European Union Agency for Criminal Justice Cooperation (Eurojust) and the European Union Agency for Law Enforcement Cooperation (Europol) in the fight against fraud and corruption; stresses the need for a comprehensive cooperation between all these institutions;

7. Notes that while the digital transformation is indispensable to increase the efficiency, control and transparency of the EU Budget, this shift has also heightened its exposure to cyber fraud affecting the financial interests of the Union; calls on the Commission to allocate sufficient funds to strengthen EU digital infrastructure, research and development while ensuring that investments in cybersecurity are impactful and contribute to the overall protection of the Union’s financial interests;

8. Is concerned that total outstanding commitments are reaching record levels for several years now; notes that the Commission projects outstanding commitments to decrease after 2024, when NGEU draws to a close; considers that until the projected decrease of the RAL, the risk of decommitments, and a related reduction of EU added value for the EU Budget, remains high; calls on the Commission to enact a more strategic, transparent, and proactive approach to managing decommitments, also considering the use of decommitments in the cascade mechanism;

9. Is concerned that the Union’s debt continues to rise, with a large share of this increase attributed to the temporary recovery instrument NGEU; is concerned that the increased debt and the associated higher interest costs will have long-term consequences on the EU’s fiscal stability, potentially leading to greater financial strain and a reduced capacity to respond to future challenges or invest in key strategic areas; encourages the Commission to explore options to reduce the overall debt burden, such as optimising the timing and structure of debt issuance, and consider alternative financing mechanisms that could reduce reliance on high-interest debt; stresses that introducing new own resources is also necessary to prevent future generations from bearing the burden for past debts;

10. Expresses regret that the overall error rate estimated by the Court has been increasing since the 2020 financial year, reaching 5,6 % for the 2023 financial year; notes significant variations in error rates across different budget headings, with some areas reporting error rates below the materiality threshold of 2 %, while cohesion policy has an error rate as high as 9,3 %; notes in particular the conclusion that errors found in 100 % EU-funded priorities contributed 5,0 % to the total estimated level of error of 9,3 %; is concerned that increasing flexibilities without at the same time either decreasing requirements or increasing ex ante checks and controls contributed to the high error rate; calls on the Commission to take careful consideration of the lessons learned from the implementation of EU crisis response tools, such as increased flexibility;

11. Notes that the Court issued a qualified opinion on the legality and regularity of the RRF expenditure in 2023; expresses concern that the Court found 7 out of 23 RRF payments made in 2023 were impacted by quantitative issues, with 6 of these payments being affected by material errors; notes in addition that absorption of RRF funds was delayed in 2023, and that Member States may not be able to complete all measures at the end of the RRF’s implementation period; notes further that the second half of the RRF’s implementation period (post 2023) is more challenging with an increase in number of milestones and targets to be implemented, a shift from reforms to investments, and a high proportion of measures to be completed in the last year; calls on the Commission to support the Member States’ authorities in the implementation of funds, in particular where additional administrative capacity is needed, to stimulate absorption and reduce the occurrence of errors; calls on the Commission to transparently inform the Parliament about the progress of implementation and absorption of funds and to timely propose solutions where bottlenecks in the implementation are observed;

12. Recalls the importance of protecting the Union’s own resources from any fraudulent irregularity and, to that end, stimulate the cooperation between anti-fraud services and customs agencies to detect, prevent and correct fraud affecting Union revenue; recalls its position on the amended Commission proposals endorsing the introduction of new own resources.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR FOR OPINION HAS RECEIVED INPUT

The Chair in his capacity as rapporteur for opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

LETTER OF THE COMMITTEE ON THE ENVIRONMENT, CLIMATE AND FOOD SAFETY (18.2.2025)

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Guidelines for the 2026 Budget – Section III (2024/2110(BUI))

Dear Mr Chair,

The Coordinators of the Committee on the Environment, Climate and Food Safety (ENVI) decided on 16 December 2024 that ENVI would provide an opinion on the Guidelines for the 2026 budget – Section III (2024/2110(BUI)) in the form of a letter. Therefore, as both ENVI Chair and Standing Rapporteur for the Budget, let me provide you with ENVI’s contribution in the form of resolution paragraphs, which was adopted by ENVI at its meeting[28] of 18 February 2025 and which I kindly request will be taken into account by your committee:

1. Highlights that the current serious geopolitical context requires the Union to allocate sufficient resources for accelerating the green transition to transform the EU into a modern, resource-efficient and competitive economy; calls on the Commission and Member States to ensure the full execution of the REPowerEU Plan to accelerate the deployment of renewable energy sources and of energy efficiency technologies to speed up the green transition and end dependency on fossil fuels

2. Stresses the importance of the Paris Agreement’s goal of keeping the global average temperature increase below 1,5°C compared to pre-industrial times; recalls the Union’s obligations to deliver the financial commitments made for international climate financing; considers that the Union should continue leading the efforts towards decarbonisation at global level;

3. Stresses that the Union’s budget for 2026 should be aligned with the realisation of the European Union’s objectives to reduce pollution and enhance biodiversity, as well as the long-term vision for a prosperous, modern, competitive and climate-neutral economy, the legally enshrined objective to reach climate neutrality by 2050 and the Union’s intermediate climate targets for 2030 and 2040, as laid down in the European Climate Law;

4. Points out that the European Green Deal is a growth strategy, whose effective implementation with adequate funding  is fundamentally connected to the Union’s strength and competitiveness; believes that the future Clean Industrial Deal and Circular Economy Act should further increase the Union’s competitiveness capacity and sustainability and resource-efficiency to achieve the European Green Deal objectives and ensure a just and inclusive transition;

5. Reminds that the EU’s long-term budget for 2021-2027, together with NextGenerationEU, is aimed at implementing the EU’s long-term priorities in various areas, including climate and the environment; emphasizes, specifically, that 30 % of total EU expenditures under the MFF have to be allocated to climate-related projects, including clean-tech and innovation projects; stresses that the future Multi-Financial Framework post-2027 should maintain the level of ambition on climate and environment protection;

6. Considers it unacceptable that the Union did not reach its objective of allocating at least 7.5 % of annual expenditure to biodiversity in 2024;  calls on the Member States and Commission to take the necessary measures to ensure that the 10 % objective will be reached in both 2026 and 2027 in order to achieve concrete outcomes, including the objectives set in the Kunming-Montreal Agreement, whilst ensuring cost-effectiveness and long-term sustainability; notes the importance of the Common Agriculture Policy (CAP) to reach biodiversity objectives;

7. Emphasises the need to allocate sufficient funding for each individual budget line that contributes to the achievement of the green transition, with a particular focus on sustainability, climate change, innovation, competitiveness, resource-efficiency and biodiversity conservation, such as attention to bees and pollinators’ protection and their role as indicators for healthy ecosystems; emphasizes the importance of the Social Climate Fund (SCF), established to support vulnerable groups in the Union’s green transition;

8. Highlights the importance of improving disaster prevention and preparedness by implementing climate adaptation measures, allowing the Union to better prevent and respond to emergencies like recent climate change events; emphasizes the ongoing need to ensure sufficient funding for the Union’s civil protection mechanism;

9. Notes the relevance of the reports adopted by the European Court of Auditors (ECA) in relation to the management of EU funds linked to climate and environment; urges the Commission and the Member States to implement the recommendations of the reports, in particular report 15/2024 on climate adaptation[29] regarding the need to ensure that all relevant EU-funded projects are adapted to the current and future climate conditions; recalls the importance of the ECA recommendations in its special report 14/2024[30], emphasising the need for the Commission to better estimate climate spending under future funding instruments, to ensure their adequate design, and to enhance the performance of green transition measures; 

10. Emphasises the need for more ambitious funding allocations for programs like LIFE to support climate and environment-related projects, as well as for the Just Transition Fund to assist the most vulnerable carbon-intensive regions in addressing the economic and social impacts of the climate transition to leave no one behind; emphasises that the funding under LIFE is crucial for the protection of nature and biodiversity, the transition towards an energy efficient, circular, climate neutral, competitive and climate resilient economy and for democratic participation in decision-making processes;  notes that efficient and result-driven climate and biodiversity financing should be integrated into programming activities, while remaining flexible enough to address the diverse needs of different regions and sectors;

11. Reminds that a stronger European Health Union requires adequate funding with health-related expenditure that follows the ‘One Health’ and ‘Health in all policies’ approaches, securing the proper implementation of, inter alia, the European Health Data Space and of the Europe’s Beating Cancer Plan;

12. Strongly reiterates its regrets over the redeployment from the EU4Health programme of 1 billion EUR over the 2025-2027 period; considers that this funding shortfall threatens the programme’s ability to achieve its critical objectives; renews its call for the Commission, Member States, and other stakeholders to identify practical solutions to offset this cut, ensuring that the programme’s objective of building stronger, more resilient, and more accessible health systems is achieved; calls as well for increased amounts allocated to Cluster Health in Horizon Europe; recognises that stronger health systems directly contribute to economic stability and productivity by reducing health-related workforce disruptions and increasing the resilience of the labour market;

13. Highlights the importance of effectively allocating sufficient human and financial resources to all relevant DGs for the implementation of the adopted legislation related to climate environment, chemicals and health as well as to the relevant European agencies, including the European Environment Agency (EEA), the European Chemicals Agency (ECHA) and the European Food Safety Authority (EFSA), the European Centre for Disease Prevention and Control (ECDC) and the European Medicines Agency (EMA);

14. Highlights the need for a strengthened EU own resources system that can address current challenges while supporting the Union’s environmental, climate and health objectives; stresses the importance of implementing the Carbon Border Adjustment Mechanism effectively, enabling the Commission to take compensatory measures to address any shortfalls in meeting the EU budget’s overall climate spending target.

I have sent a similar letter to Mr Andrzej Halicki, general rapporteur for the 2026 budget.

Yours sincerely,

Antonio Decaro

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The Chair in his capacity as rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

LETTER OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY (19.2.2025)

Mr Johan VAN OVERTVELDT

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion in the form of a letter on the Guidelines for the 2026 budget – Section III (2024/2110(BUI))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Industry, Research and Energy has been asked to submit an opinion to your committee. On 19 February 2024, the committee adopted an opinion in the form of letter during its regular meeting.

The Committee on Industry, Research and Energy calls on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution.

Yours sincerely,

Borys BUDKA  

ITRE Chair

SUGGESTIONS

1.  Recalls that the Union Budget for 2026 should concretely reflect the political priorities of the new legislative term, considering also the various pledges made by Commissioners during their confirmation hearings in Parliament in November 2024; insists that the 2026 budget needs to fully implement all programmes agreed under the current Multiannual Financial Framework (MFF), as well as set  in motion and finance new strategic EU initiatives, such as the Clean Industrial Deal for competitive industries and quality jobs; underscores that the 2026 budget must be aligned with the Union’s objectives and international commitments;

2.  Notes that multiple challenges facing Europe require greater investment and coordination at European level, as well as more concrete action by Member States; calls on the Commission to propose a Union Budget for 2026 that reflects the urgent nature of these challenges; among others, the ongoing Russian invasion of Ukraine and hybrid attacks on Member States and their energy and digital infrastructure; maintains this requires multiple forms of EU and national level investments and preparedness, including improving the resilience of digital and energy infrastructure, direct support for Ukraine, accelerated investment in Europe’s defence industry, and support for the EU’s Eastern border regions most directly impacted by the war and Russian hybrid operations; the need to strengthen Europe’s economic competitiveness and industrial base in a volatile environment where global competitors benefit from extensive state support, leading to unfair competition for European companies; the urgent necessity to improve Europe’s research and innovation capabilities, including greater support for SMEs, start-ups and scale-ups; the digital revolution, including the acceleration of artificial intelligence and growing concerns about cybersecurity; and the need to achieve a just climate transition, as we adapt our economy to the Union’s long-term energy goals and climate neutrality by 2050, by accelerating the decarbonisation in Europe’s energy markets, implementing European Green Deal legislation and achieving a circular economy;

3.  Notes that EU companies face considerably higher electricity and gas prices compared with the USA, China and other global actors, which presents a significant competitiveness disadvantage, especially but not only for Europe’s energy intensive industries; emphasises the need to  tackle energy poverty and limit the damaging effects of high energy prices on European consumers, many of whom are already struggling with a high cost of living; stresses the importance of reducing EU dependence on fossil-fuels and improving energy efficiency; underlines that security of supply concerns remain paramount and should be addressed in the 2026 budget, given  that energy supplies are easily weaponised by state actors; insists on the need to improve energy interconnections, modernise energy grids, integrate a higher share of renewables while ensuring sufficient clean baseload energy and system flexibilities, therefore calls for significantly increased funding for the Connecting Europe Facility – Energy, which is the flagship EU programme in this field but currently has limited resources to credibly advance Europe towards an interconnected, resilient and decarbonised energy system, able to deliver affordable prices; calls for urgently ending any remaining EU import dependencies on Russia:

4.   Recalls the need to strengthen the resilience of the EU economy and the competitiveness of Union industries, with ambitious EU industrial policies that can create quality jobs and contribute significantly towards achieving the EU’s social, digital and green objectives, whilst preserving a level playing field in the Single Market; therefore believes that the Union Budget for 2026 should mark the start of the investment boost recommended in the Draghi report by investing strongly in industrial competitiveness, open strategic autonomy and creating pathways towards decarbonisation, while securing EU supply chains for strategic sectors and technologies and improving access to critical raw materials; insists that the 2026 budget must continue strengthening the Union’s competitiveness with increased support for SMEs, midcaps and start-ups, including greater support for scale up to compete globally, in particular through the European Innovation Council;

5.  Recalls that the 2026 budget for Horizon Europe will be the first after the mid-term review of this strategic EU programme, and therefore needs to offer sufficient investment in fundamental and applied research, foster collaborative research and facilitate the scale-up and commercialisation of research results to ensure Europe can retain and further develop the necessary knowledge base to confront the scientific and economic challenges of the coming decades; regrets that the existing level of Horizon Europe funding is ultimately insufficient to develop the ideas and technologies necessary for the twin green and digital transitions, or to fully deliver on the stated EU goals of sustainable growth and open strategic autonomy; calls for an increase in the 2026 budget for Horizon Europe, including through the reuse of all available decommitments allowing each sub-programme to fund at least 50% of all excellent proposals, given that presently a majority of excellent proposals remain unfunded; calls for maintaining stable and sufficient funding of the ITER project;

6.  Stresses that significant investments are necessary to address Europe’s connectivity gap and other Digital Decade 2030 targets; recalls that the European Commission estimates that achieving the full gigabit target could exceed €200 billion; calls therefore for adequate resources to be allocated to provide high speed connectivity including gigabit and 5G services, in addition to investments in next generation digital infrastructures and emerging technologies; calls for further investments that foster the development of European digital sovereignty and an EU-based digital sector in order to catch up in crucial areas such as quantum computing and Artificial Intelligence; calls on the Commission to allocate sufficient resources to ensure the full implementation and robust enforcement of the Digital Services Act and the Digital Markets Act; stresses the importance of tackling foreign interference, addressing the dangers of biased algorithms, and safeguarding transparency, accountability, and the integrity of the digital public space.

7.  Underlines that a strong and sustainable European space sector is fundamental for European security, open strategic autonomy, secure connectivity, protection of critical infrastructure and advancing the twin green and digital transitions; regrets that EU and its Member States funding for space programmes is highly fragmented and only a fraction of the level in the US, while other global actors including China are rapidly increasing investments; calls on the Commission and Member States to ensure sufficient funding for the European space industry, which includes fostering investments from the private sector; calls furthermore for a sufficient level of  EU investments supporting R&I in the field of space;

8.  Calls for adequate funding and staffing for all agencies and Union bodies in the policy areas of industry, research, energy, space and cybersecurity, in order to cope with increased workload and new regulatory obligations; 

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

LETTER OF THE COMMITTEE ON CULTURE AND EDUCATION (19.2.2025)

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Guidelines for the 2026 Budget –Section III 2024/2110(BUI)

Dear Mr Van Overtveldt,

to above, the Committee on Culture and Education has been asked to submit an opinion to your committee. At its meeting of 3 December 2024, the committee decided to send the opinion in the form of a letter. It considered the matter at its meeting of 19 February 2025 and adopted the opinion at that meeting[31].

The Committee on Culture and Education:

1. Insists that funding for the most successful EU and crucial programmes like Erasmus+, the European Solidarity Corps (ESC), Creative Europe and the Citizens, Equality, Rights and Values (CERV) programme has to be excluded from debt repayment needs for the European Union Recovery Instrument (EURI) over the whole remaining MFF period; stresses that the ‘EURI cascade mechanism’ has to be implemented effectively, protecting important programme initiatives that directly benefit citizens;

2. Welcomes further simplification in line with EP calls, e.g. through the use of lump sums in Erasmus+ , for the programmes that are close to the citizens and need to be accessible also for organisations with limited administrative capacities, and calls for further efforts to achieve that end; underlines that attention should be given to peripheral, mountainous and rural areas that experience more difficulties in accessing EU funds; calls on the Commission to continue to share regularly with Parliament, including the Committee on Culture and Education, updated indicators and statistics on the absorption of funds in these programmes;

3. Welcomes that mobility grants under Erasmus+ were increased to offset rising living costs, upon Parliament’s insistence on an increase to the programme’s budget, to ensure that the programme remains accessible and inclusive;

4. Stresses necessary efforts to widen participation and to meet inclusivity targets in order to widen the participation of the most vulnerable youth groups and people with disabilities;

5. Strongly warns against any cuts, and calls for an increase of the funding for the programme, taking into account the high implementation rates and absorption capacities of the programme; calls in particular to preserve funding to initiatives that support teacher development, such as the European Universities and the Erasmus+ Teacher Academies; highlights the growing number of applicants – e.g. a 94% increase  in school education mobility applications from 2022 to 2023 ; regrets, however, the consequence of  lower success rates, notably for school accreditations, which underscores the need for a substantial funding increase to meet the growing demand;

6. Insists that all funding initially allocated to the programme will be used for investing in the future of young people;

7. Emphasises the need to support sport under Erasmus+ to promote its role in improving physical and mental health and social inclusion, and to fight discrimination;

8. Deplores the additional, unanticipated costs for the media strand of Creative Europe, including the implementation of not only the AVMSD, but also of EMFA, including the secretariat of the European Board for Media Services, an additional expenditure that was not taken into account when the current MFF was set up; insists that new initiatives should always be financed from fresh money;

9. Stresses that the budget for the Creative Europe programme is insufficient to meet the high demand for projects across all its strands, with alarmingly low success rates (e.g. 17% in 2023 under the culture strand); calls for an increase of its funding and highlights the need for synergies between Creative Europe and other EU funds.

10. Calls for an increase in funding for the ESC programme, given the modest year-on-year increases of about 2% of its budget under the MFF, which is not sufficient to offset inflation rates, and the fact that it is heavily over-subscribed, resulting in a high rejection rate and, therefore, in many cases, disappointment for the young applicants; welcomes the fact that the number of participants with fewer opportunities in the programme (38%)  is the highest of any EU programme and should be maintained;

11. Stresses the importance of the CERV programme for building bridges between European citizens from different Member States and promoting their engagement and participation in the democratic life of the Union, while also contributing to preserving social cohesion and helping to prevent democratic backsliding, particularly in the current challenging political situation; insists, therefore, on an increase for its budget;

12. Points out that pilot projects and preparatory actions (PPs and PAs) serve as testbeds for new policy initiatives and need adequate funding to properly fulfil that function; deplores any attempts to thwart potentially successful proposals for PPs and PAs already at the selection stage and calls for better cooperation between the Commission and the European Parliament on the selection and implementation of PPs and PAs.

Yours sincerely,

Nela Riehl

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur for the opinion declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

LETTER OF THE COMMITTEE ON CONSTITUTIONAL AFFAIRS (18.2.2025)

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on Guidelines for the 2026 Budget – Section III (2024/2110(BUI))

Dear Mr Van Overtveldt,

Under the procedure referred to above, the Committee on Constitutional Affairs has been asked to submit an opinion to your committee. At its meeting of 29 January 2025, the committee decided to send the opinion in the form of a letter.

The Committee on Constitutional Affairs considered the matter at its meeting of 18 February 2025. At that meeting[32], it decided to submit the opinion set out below to the Committee on Budgets, as the committee responsible.

Yours sincerely,

Sven Simon

OPINION

1. Points out that future substantial EU enlargement cannot be met without a larger EU budget and sufficient new own resources; calls for the necessary budgetary and institutional reforms to be agreed and adopted before substantial enlargement takes place;

2. Reminds of the need to secure proper financing for the structures within the EU institutions that are responsible for communication with citizens and countering disinformation such as the Commission Representations and European Parliament Liaison Offices, in order to enable them to effectively fulfil their tasks;

3. Recommends that the Authority for European Political Parties and European Political Foundations receives adequate resources, in particular for staffing purposes in view of the significant enlargement of its tasks as foreseen by the Commission proposal for the recast of Regulation (EU, Euratom) 1141/2014;

4. Urges the Committee on Budgets to incorporate the above mentioned budget lines augmentations in its position, as they serve the purpose of delivering concrete results and quality communication to citizens.

ANNEX: ENTITIES OR PERSONS
FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The Chair declares under his exclusive responsibility that he did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

Key to symbols:

+ : in favour

– : against

0 : abstention