Council proposes €231M cut to 2027 Horizon Europe budget

16 Jul 2026 | News

EU governments say they want to reduce spending to be able to respond to emerging priorities

Photo credits: Lukasz Radziejewski / Unsplash

EU governments have proposed a €231.5 million cut to Horizon Europe next year, after agreeing their position on the 2027 EU budget on July 15. As negotiations continue over the next long-term EU budget, for 2028-34, this is the latest signal that national governments will resist any major increase to research and innovation spending at EU level.

The European Commission’s budget proposal for 2027 allocated €12.8 billion to Horizon Europe, which falls to €12.6 billion under the Council’s plans.

Under Pillar 1, the European Research Council budget would drop by €5.5 million compared to the Commission’s proposal, and the budget for research infrastructures would fall by €10.4 million.

Proposed cuts to Pillar 2, which funds collaborative research. include €74.5 million to the health cluster; €10.4 million to culture, creativity and inclusive society; and €20 million to the climate, energy and mobility cluster.

Elsewhere in the budget, EU governments are proposing cuts of €10.7 million to the Euratom Research and Training Programme, €70 million to the International Thermonuclear Experimental Reactor, €55 million to the Digital Europe Programme, €10.3 million to the European Space Programme, and €159 million to the Erasmus+ higher education programme. Overall, the Council wants to cut the annual EU budget from €192.9 billion to €191.9 billion.

In a note published with the agreement, the Council’s budget committee laid out three reasons for reducing spending: first, to ensure “an appropriate level for the implementation of programmes” that avoids “excessive increases” compared to 2026; second, to cope with current crises related to Ukraine, the Middle East and to “migratory pressures” on Europe; and third, to leave sufficient margin to respond to unforeseen circumstances.

“The Council’s position on the 2027 EU budget would ensure that we have the financial capacity to navigate ongoing complex geopolitical realities that demand swift and decisive action,” said Ireland’s finance minister, Simon Harris, for the EU presidency.

The agreement was reached between EU member state ambassadors. The Council is now aiming to formally adopt its position on the draft budget in September, ahead of negotiations with the European Parliament. The deadline for reaching an agreement is November 16.

It’s common for EU governments to seek to reduce research and innovation spending, and for the Parliament to push for a more ambitious budget. Last year, the Council proposed a cut of €211 million to the 2026 Horizon Europe budget, but during negotiations MEPs managed to secure a €20 million increase on the Commission’s proposal.

Horizon Europe also risks being one of the big losers from the negotiations over the next seven-year budget. The first negotiating figures put forward by the Cyprus presidency of the EU in June would see the programme cut by 4% relative to the Commission’s plans.

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