The EU budget spending supports people and communities across the country. It benefits farmers, students, researchers, small businesses, community groups, local councils, cultural organisations, and both coastal and rural communities.
EU budget funds have helped develop major infrastructure projects such as the M4/M6 corridor between Dublin and Galway and the M9 between Kilcullen and Waterford, as well as the Dublin Port Tunnel, the completion of the M50, Dublin’s Luas Red Line and the DART.
Ireland’s farming and rural heritage are supported with budget funds through the Common Agricultural Policy (CAP), and the country’s future is shaped through budget investments in energy security and climate goals, such as the Celtic Interconnector. Over €537 million has been invested in this high‑voltage submarine power cable, which will link the electricity grids of Ireland and France and enable the exchange of renewable electricity.
Irish universities, research organisations and companies have been awarded over €1 billion in funding from the Horizon Europe 2021-2027 budget, facilitating excellent and impactful research and innovation and increasing Ireland’s R&I footprint on a European and global scale.
European Union Member States have been pooling resources for decades to finance projects and investments like these that make a real difference to the lives of European citizens. In 1988 the concept of multi-year financial planning was introduced and today the EU’s long-term budget plan is known as the Multiannual Financial Framework (MFF).
The current MFF cycle that began in 2021 runs until 2027, and preparations for its successor are already well underway. Reaching agreement on the MFF 2028–2034, which involves significant changes in how money is spent and raised, will be a key area of focus during Ireland’s Presidency of the Council of the EU in the second half of 2026.
The Multiannual Financial Framework (MFF) 2028–2034
The MFF divides EU spending into broad categories called headings, and sets multi-annual ceilings that cap how much can be spent under each one.
Put simply, the MFF’s job is to keep the annual EU budget disciplined, and to make sure spending matches the EU’s political priorities over a lengthy period. This makes planning easier for co-financiers like the Irish Exchequer and other public bodies that have to match EU funding, and for organisations that rely on EU support to deliver projects on the ground.
In July 2025 the European Commission presented its proposal for a more flexible, simpler long-term budget for 2028–2034. The proposal builds on lessons learned from the current MFF cycle, when the EU budget had to be adjusted to help respond to major shocks including the COVID-19 pandemic, Russia’s war of aggression against Ukraine and the energy and supply chain crises that followed.
“Our new long-term budget will help protect European citizens, strengthen Europe's social model and make our European industry thrive. In a time of geopolitical instability, the budget will allow Europe to shape its own destiny, in line with its vision and ideals. A budget that supports peace and prosperity and promotes our values is the best tool we can have during these uncertain times.” President von der Leyen.
The new MFF amounts to almost €2 trillion, or 1.26% of the EU’s gross national income (GNI) on average between 2028 and 2034.
Key features include:
- More built-in flexibility so the EU can respond faster when crises hit or priorities shift.
- A simpler budget architecture with fewer, more streamlined programmes and easier access to information on funding opportunities.
- A European Competitiveness Fund linked to Horizon Europe that will help Europe secure supply chains and scale up clean and smart tech.
- A major boost for defence, security and space investment, including €131 billion through the defence and space window of the European Competitiveness Fund.
- A stronger local focus through National and Regional Partnership Plans (NRPPs) that will make delivery of EU support faster, more flexible and more tailored.
- A new approach that brings regional development and agricultural funding together under these NRPPs.
- Continued, ringfenced income support for farmers and fishers, alongside simpler rules for agriculture and rural communities.
- €453 billion allocated across the EU for economic, social and territorial cohesion, including support for fisheries and coastal communities.
- A renewed PEACEPLUS cross-border programme between Northern Ireland and the border counties of Ireland.
EU budget spending in Ireland
From 1973 to 2018, Ireland was a net recipient of over €40 billion in EU funds but is now a net contributor because its economy is among the strongest in the EU. However, EU membership still brings major economic wins to Ireland, including Single Market benefits estimated to be worth over €30 billion and goods exports to the EU of €88.5 billion in 2024.
According to the Commission’s budget implementation data, Ireland contributed €3.01 billion to the total EU revenue of €250.61 billion or about 0.74% of the Irish economy in 2024.
In the same year, EU spending in Ireland amounted to €2.19 billion, most of which was under three headings:
- €1.55 billion on agriculture, rural development and nature conservation
- €297 million on Single Market, Innovation and Digital
- €230 million on cohesion, resilience and values.
The remainder was spread across smaller headings such as Migration and Border Management, Security and Defence, Neighbourhood and the World, and European Public Administration.
In addition to the investment in Ireland, the EU budget provides support in other areas, including:
- Economic development of less wealthy EU countries
- Assistance in situations of natural disasters
- Development aid and assistance to EU neighbours and third countries.
Ireland can see EU support in everyday life, from farming and nature protection to transport and research.
Examples include:
Killybegs Harbour: The harbour’s redevelopment was part of a €51.1 million ERDF co-funded investment under the BMW Regional Programme, adding 300 metres of deepwater berthing space.
Traditional Farm Buildings Grant Scheme: Co-funded under Ireland’s Rural Development Programme and administered by the Heritage Council, it typically supports 70-80 projects a year and it won a European Heritage Award in 2024.
HECATE: A Horizon Europe funded project led by Collins Aerospace in Cork, with over €34 million in EU funding to develop technologies for hybrid electric regional aircraft.
Dublin Port and Port of Cork: More than €112 million in EU Connecting Europe Facility Transport funding has been selected for port upgrades, including new berth works and onshore power supply.
Salmon Weir Bridge, Galway: Received €3.5 million from the European Regional Development Fund and was the first new bridge over the River Corrib in more than 30 years.
Wild Atlantic Nature: A €20.6 million LIFE project focused on conserving and restoring blanket bog habitat in northwest Ireland.
Altratech, Cork: Approved for a recommended €10.5 million investment from the European Innovation Council Accelerator to scale up a handheld molecular testing device.
For more examples see our EU stories page.
EU spending and revenue 2021-2027
How the MFF is adopted
The new MFF is informed by evidence on how the current framework is working and through consultations with Member States, stakeholders and citizens. Before it can be adopted, a number of steps have to be completed:
- The MFF is adopted as a Council Regulation, agreed unanimously by the Council of the EU.
- The European Parliament gives its consent through a majority of votes cast by MEPs.
- The rules on how the EU budget is financed are set out in the Own Resources Decision, which is the EU’s legal framework for raising revenue. It must be approved by all Member States in line with their constitutional requirements. In Ireland, that means Oireachtas approval.
- The Commission proposes rules for each EU funding programme under the new MFF, and the Council and European Parliament negotiate and adopt them so they are ready to launch when the new budget period starts.
- Even with a seven-year framework in place, the EU still has to agree a budget every year, but it must stay within the MFF ceilings.
The annual EU budget is complementary to national budgets and it comes into play when it is more effective to spend money at the EU level than at local, regional or national level. It is adopted through a democratic process involving the European Parliament and the Council, ensuring elected representatives shape how money is spent.
The MFF is financed from a number of different sources including:
- Own resources: this is the EU’s core income stream for the vast majority of EU budget revenue. It comes mainly from customs duties, VAT-based contributions from Member States and a GNI-based contribution. Since 2021 there is also a contribution linked to non‑recycled plastic packaging waste.
- The MFF 2028–2034 proposal includes a balanced package of five new own resources, which together with other related measures are predicted to generate around €58.5 billion in revenue per year (in 2025 prices) to fund priorities while easing pressure on national public finances.
- Other revenue: this is the smaller top-up category, that includes any surplus carried over from the previous year, plus items such as interest on late payments and fines. It also includes taxes and other deductions from EU staff salaries.
The MFF 2021-2027
The current MFF 2021-2027 includes a comprehensive financial package amounting to:
- €1.211 trillion under the MFF.
- €807 billion under the temporary recovery instrument, NextGenerationEU.
- €64.6 billion top-up allocated after a mid-term revision in 2024 to finance priorities such as support for Ukraine and migration.
NextGenerationEU was introduced as a one off recovery instrument after COVID-19, with most funding channelled through the Recovery and Resilience Facility (RRF), which supports national Recovery and Resilience Plans through grants and loans. Ireland is expected to receive about €1.15 billion in RRF grants over the lifetime of its plan.
Under the MFF 2021-2027, Ireland will receive almost €1.2 billion in Cohesion Policy allocations, just over €8.3 billion in direct payments from the European Agricultural Guarantee Fund, and €2.25 billion through the European Agricultural Fund for Rural Development.
Unlike the MFF, NextGenerationEU is financed by EU borrowing, with repayment due by 2058. Member States repay the loan part, while the grant part is repaid through the EU budget.
2021-2027 long-term EU budget & NextGenerationEU
EU Budget accountability
The EU budget is implemented in three main ways.
- Shared management: National authorities in the Member States and the European Commission manage most EU spending together, including big programmes like the Common Agricultural Policy and cohesion funding.
- Direct management: The European Commission manages funding directly, including awarding grants and running tenders, often through its departments, EU delegations or executive agencies.
- Indirect management: The Commission entrusts budget implementation tasks to partner organisations or other authorities inside or outside the EU.
Even where the day-to-day work is done under shared or indirect management, the Commission is ultimately responsible for managing the EU budget.
Two key bodies that support scrutiny and independent audit are the European Court of Auditors and the European Parliament, which decides on discharge on a Council recommendation and taking account of the Court of Auditors’ work.
The EU also has transparency and anti-fraud safeguards to help protect the budget, including OLAF and the Early Detection and Exclusion System.
European Anti-Fraud Office (OLAF)
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