The Council of the European Union has set its position on the 2027 EU budget at €198.9 billion in commitment appropriations and €211.5 billion in payment appropriations, cutting €1.0 billion in commitments and €0.5 billion in payments from the European Commission's draft budget (DB 2027). The position, adopted on 15 July 2026, reduces spending across most headings, with the largest cuts directed at the Single Market, Innovation and Digital cluster (€435.5 million) and Cohesion, Resilience and Values (€523.1 million). The cuts create margins under several headings: €614.0 million under Heading 1, €93.1 million under Heading 3, €116.6 million under Heading 4, €25.1 million under Heading 5, and €540.7 million under Heading 6. Special instruments, including the Solidarity and Emergency Aid Reserve (€1.82 billion) and the European Globalisation Adjustment Fund (€35.9 million), remain unchanged. The overall budget represents 0.95% of GNI in commitments and 1.00% in payments.
The Council's position targets key EU programmes for reductions. Horizon Europe faces a cut of €231.5 million in commitments, ITER loses €70.0 million, the Connecting Europe Facility (CEF) is reduced by €53.6 million, and Digital Europe by €55.0 million. The European Research Infrastructure (EURI) financing cost is cut by €180.0 million. In the social and cultural domain, Erasmus+ is reduced by €159.0 million, Creative Europe by €31.6 million, and the Justice, Rights and Values programme by €39.2 million. EU4Health is cut by €43.3 million, and the LIFE programme for environment and climate action by €10.2 million. The European Defence Fund sees a modest reduction of €0.4 million. The only heading to see a slight increase in commitments is Neighbourhood and the World (+€1.0 million), though payments under that heading are cut by €3.6 million.
The budget position reflects the Council's preference for fiscal restraint, prioritising margins for unforeseen needs while maintaining support for special instruments. The cuts are concentrated in areas that represent significant EU investment in innovation, cohesion, and social programmes, potentially slowing the rollout of digital and research initiatives. The reductions to Horizon Europe and Erasmus+ may affect the EU's competitiveness and educational exchange, while cuts to EU4Health could impact health preparedness. On the positive side, the created margins provide flexibility for the Council and Parliament to address emerging priorities during the upcoming conciliation procedure. The European Parliament will now set its own position, leading to negotiations to reconcile differences before the budget is adopted by the end of the year.