The EU is preparing a new seven-year budget after 2027. The discussion is moving toward greater flexibility, simpler rules, and less bureaucracy. We looked at what is taking shape and what it could mean for Slovakia.
Why the budget should be more flexible
An intensive debate is underway at the national and European levels. The European Commission has already held an exploratory discussion and is due to present a proposal in two stages in July. The public has been involved – the consultation ran until the end of May, and three citizens’ panels with 150 participants produced 22 recommendations and 11 horizontal principles. Their outputs are now being analyzed.
The current 2021 – 2027 framework was prepared in 2019 – 2020, and therefore finances priorities from before the pandemic and geopolitical shocks. In the meantime, the world has sped up, including the advent of artificial intelligence, which calls for quicker responses. Today, approximately 90 % of funds are pre‑allocated and only about 4 % can be moved flexibly. The new philosophy aims to strengthen flexibility, including by creating a reserve for crises and technological changes.
Fewer programs, more clarity
Today’s problem is fragmentation and overlapping programs. The Commission therefore plans to consolidate financing instruments so that they have more uniform rules and a clear process. The Horizon Europe program is to remain a separate, successful pillar. A key role is to be played by the European Competitiveness Fund, which would support projects from the idea through startup and scale‑up to manufacturing and market entry.
The goal is to reduce bureaucracy and administrative costs. Many companies have so far preferred not to apply for support because the paperwork is demanding and as much as a fifth of the grant can be eaten up by application‑related obligations. Farmers and municipalities are similarly hesitant. Simpler rules and a single, integrated instrument are meant to lower these barriers.
Implications for investment and next steps
Cohesion policy and the Common Agricultural Policy will remain the main investment pillars. Within the Union, approximately EUR 400 billion is to remain available for cohesion, with sustainability and digitalization as priorities. The release of tranches may be more tied to meeting milestones and reforms, similar to the recovery plan.
It is premature to assess national allocations for now. The EU budget amounts to approximately 1 % of the Union’s GDP, but for Slovakia it is a crucial source of public investment. At the same time, repayment of the common debt from the recovery plan is approaching and there is a debate about new own resources, which promises tough negotiations. The first proposal is due in July, and the suspension of funds for Slovakia is not on the table at this point, as the Commission prefers dialogue and, if necessary, uses standard legal procedures.
