Commissioner for Budget Piotr Serafin presented the Draft Budget 2027 to the European Parliament's Budgets Committee on 15 June 2026, proposing €200 billion in commitments and €212 billion in payments — a 7% year-on-year increase — but faced pushback from MEPs who argued the figures amount to a real-terms cut.
General rapporteur Nils Ušakovs (S&D, Latvia) challenged the proposal, noting that commitments rise only 3.5% in nominal terms, which he said represents a reduction after inflation, and that margins below €500 million leave no room for unforeseen needs. He questioned the Commission's assumptions on NGEU disbursements and interest rates, and criticised the use of all available flexibilities to cover Ukraine loan costs rather than deploying the dedicated instrument. Janusz Lewandowski (EPP, Poland), standing in for the rapporteur for other sections, echoed concerns about tight margins.
Serafin defended the proposal as respecting MFF ceilings, and highlighted that reflows from EFSD+ provisioning freed €3 billion to offset Ukraine costs. He stressed that margins are extremely tight due to debt servicing — €9.9 billion for NGEU interest and €1.15 billion for the Ukraine support loan — leaving little flexibility for new initiatives without redeployments. The debate exposed a cleavage between the Commission's emphasis on fiscal discipline within existing ceilings and MEPs' demand for a budget that keeps pace with inflation and unforeseen needs.
A real-terms cut would negatively impact member states facing higher GNI contributions and beneficiaries of cohesion and agricultural funds, while Ukraine stands to receive €4 billion in non-repayable support. Next steps: the full draft budget is due on 9 July, with trialogues on 16 July and 14 October, an amending letter in early October, and reconciliation starting 27 October.