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European Union

European Parliament Approves Council Position on Draft Amending Budget for 2025

Strategic Insights

— 2 min read

The European Parliament has voted to approve the Council's position on Draft Amending Budget No 1/2025, which aims to enter into the 2025 budget the surplus resulting from the implementation of the 2024 financial year. The budget surplus amounts to EUR 1 345 million, driven primarily by an increase in financial revenue, default interest, and fines. The Parliament welcomed the budgeting of the surplus but expressed concerns about the reduction in GNI-based own resources contributions of Member States and called for a sound and durable architecture for the next multiannual financial framework.

Key Takeaways:

  • The European Parliament has approved the Council's position on Draft Amending Budget No 1/2025, aiming to enter the 2025 budget the surplus from the 2024 financial year.
  • The budget surplus amounts to EUR 1 345 million, with the primary driver being an increase in financial revenue, default interest, and fines.
  • The Parliament regrets the reduction in GNI-based own resources contributions of Member States, calling for a sufficient level of flexibility in the Union budget to cope with unforeseen events and new priorities.
  • The Parliament emphasizes the need for sustainable revenue for the Union budget, including the reform of the own resources system and the identification of new, innovative, and genuine revenue sources.
  • The Parliament calls on the Commission to design a sound and durable architecture for the next multiannual financial framework, ensuring sustainable management of non-discretionary costs and liabilities.
  • The Parliament recalls its long-standing position that windfall gains from fines and fees should be used as supplementary revenue for crisis response or unexpected needs, rather than reducing GNI-based contributions.
  • The Parliament welcomes the method of incorporating costs for the budget stemming from payment made under settlement agreements, which amounts to EUR 534 million.

Statistics:

  • EUR 1 345 million: The budget surplus from the 2024 financial year.
  • EUR 1 072 million: The positive outturn on revenue, contributing to the surplus.
  • EUR 272.5 million: The under-spend of expenditure, contributing to the surplus.
  • EUR 534 million: The negative income item under the new Article 425, related to settlement agreements and default interest compensation.
  • 0.02%: The under-implementation in payments by all institutions, totaling EUR 273 million.

Sources:

  • Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union [1]
  • Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021 to 2027 [3]
  • Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union, and the European Commission on budgetary discipline, on cooperation in budgetary matters, and on sound financial management [4]
  • Draft amending budget No 1/2025, adopted by the Commission on 9 April 2025 (COM(2025)0350)
  • Council Decision (EU, Euratom) 2020/2053 EU of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom [5]

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