The Council has taken note of the Commission Decision on the non-automatic carry-over of appropriations from the 2025 EU budget to 2026, totalling approximately €430 million. The funds, which were committed but not spent in 2025, will now finance needs in 2026 across agriculture, law enforcement, fraud prevention, and the Recovery and Resilience Facility (RRF). The decision ensures continuity of financial support for key EU policies, though it also reflects delays in programme implementation.
Document Details and Scope The cover note, published on 2 May 2026, outlines the Commission's decision under Article 12 of the EU Financial Regulation. The largest portion, €391.4 million, comes from the agricultural reserve for commitments not utilised in 2025, safeguarding support for farmers and rural development. Additionally, €11.8 million is carried over for Europol to enhance law enforcement cooperation, and €8.96 million for preventing and combating fraud and corruption affecting the EU budget. A further €17.8 million from the RRF is carried over due to delayed payment requests, particularly affecting Luxembourg's commitments.
Policy Orientations and Trade-offs The carry-over balances the need for fiscal continuity against the risk of perpetuating inefficiencies. On one hand, it prevents the loss of funds already allocated, supporting farmers and law enforcement agencies that rely on predictable funding. On the other hand, it may reduce pressure on Member States and EU bodies to improve budget execution, potentially delaying reforms. The agricultural carry-over, in particular, highlights the tension between maintaining income support for farmers and encouraging more efficient use of CAP funds. Similarly, the RRF carry-over underscores challenges in meeting reform milestones, which could slow the bloc's economic recovery.
Impact on Stakeholders - EU farmers and agricultural sector: Benefit from the €391.4 million carry-over, ensuring continued direct payments and market measures. However, the reliance on carry-overs may signal underlying issues in programme design or absorption capacity. - Europol and law enforcement agencies: Gain €11.8 million for operational activities, strengthening cross-border police cooperation. This is positive for security but may raise questions about the agency's ability to spend its original budget on time. - EU taxpayers and budget watchdogs: The carry-over of €8.96 million for fraud prevention is intended to protect the budget, but the delay in spending could undermine the effectiveness of anti-fraud measures. Overall, the carry-over reduces the need for new appropriations in 2026, slightly easing the burden on national contributions. - Luxembourg and other RRF beneficiaries: The €17.8 million carry-over for delayed payment requests may hinder the timely implementation of national recovery plans, potentially affecting investment and reform momentum.
Institutional Follow-Up The Council's note formalises the Commission's decision, which does not require further legislative action. The European Parliament will be informed as part of the budgetary discharge procedure for 2025. The Commission will report on the use of these carry-overs in the 2026 budget implementation, and the Council may review the effectiveness of non-automatic carry-overs in future budget negotiations.
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