The Council of the EU and the European Parliament have reached an agreement on the EU’s annual budget for 2026, amounting to €192.8bn in commitments and €190.1bn in payments, equivalent to 1.00% and 0.99% of the Union’s gross national income respectively. The budget prioritises competitiveness, defence readiness, humanitarian aid and migration management, while maintaining flexibility to respond to unforeseen crises. Within the 2021–27 multiannual financial framework, €715.7m remains available for unexpected expenditure, with allocations across key areas including the single market, cohesion, environment, security and global engagement. As the sixth annual budget under the current framework, it complements the EU’s coronavirus (COVID-19) recovery plan under NextGenerationEU. The agreement will now proceed to formal approval by both institutions, with the Council expected to endorse it on 24 November 2025 by qualified majority.