The European Commission published its annual accounts for financial year 2025 on 23 June 2026, revealing a deficit of €54.8 billion, an improvement from the €97.2 billion deficit recorded in 2024. Total assets stood at €611.6 billion, up from €513.2 billion in the previous year, while total liabilities reached €975.5 billion, compared to €826.5 billion in 2024. Net assets remained negative at minus €363.8 billion, widening from minus €313.3 billion. Cash and cash equivalents at year-end rose to €102.1 billion from €61.7 billion in 2024.
The accounts, covering the Commission's financial position, performance, and cash flows as of 31 December 2025, were certified by Accounting Officer Niall Bohan on 18 June 2026. They were prepared under the Financial Regulation (Regulation (EU, Euratom) 2024/2509) and EU accounting rules based on International Public Sector Accounting Standards (IPSAS). Total revenue for 2025 was €196.1 billion, up from €169.8 billion in 2024, while total expenses decreased to €250.9 billion from €267.0 billion.
The document notes that the United Kingdom continues to have a financial relationship equivalent to a Member State for Multiannual Financial Frameworks up to the end of 2020 under the Withdrawal Agreement. New accounting rules effective from 1 January 2025 include an amendment to European Accounting Rules (EAR) 1 on segment reporting, while revised EAR 8 on leases and an EAR 1 amendment on borrowing classification have been adopted for application from 1 January 2027.
The accounts are addressed to the European Parliament, the Council, and the Court of Auditors, which will review them as part of the annual discharge procedure. The improved deficit reflects higher revenue and lower expenses compared to 2024, though the negative net asset position indicates that the EU's liabilities continue to exceed its assets, driven largely by employee benefits and provisions.
EU taxpayers and member states face continued exposure to the EU's growing net liability position, which may influence budget negotiations. EU institutions and agencies will need to align with new accounting standards by 2027, potentially affecting financial reporting and planning. Investors and creditors may view the increased cash reserves positively, but the persistent deficit and negative net assets could raise concerns about long-term fiscal sustainability. The European Court of Auditors is expected to issue an opinion on the reliability of the accounts and the legality of underlying transactions, which will inform the European Parliament's discharge decision.