The Council and the European Parliament (on 22 November 2022 and 23 November 2022, respectively) formally approved the EU budget for 2023. In total, next year's budget amounts to €186.6 billion in commitment appropriations and €168.6 billion in payment appropriations. This represents an increase of +1.1% in commitments and +1% in payments compared to the 2022 budget.

The traditionally largest items in the budget next year are again the cohesion programmes for regional development at €62.9 billion and agricultural policy at €53.6 billion. Most of the increase (about €280 million) is aimed at increasing funding for Ukraine and neighbouring countries such as Moldova. Other funds are dedicated to the energy transition.

In agreeing on the 2023 budget, the EU institutions also agreed to endorse the Commission's proposals to amend the 2022 budget later this year. Once the approval process is completed, the Commission will be able to, among other things, further promote and support Ukraine, help Member States more affected by the influx of migrants and Ukrainian refugees, and address other challenges facing the EU from a broader macroeconomic perspective.

MEPs were particularly satisfied with the negotiations on the 2023 budget, since they secured additional funding compared to the Commission’s draft and the Council’s position. This particularly concerns the following areas:

• Consequences of the war in Ukraine: inter alia, +€120 million for Erasmus+ to support students and teachers from Ukraine, +€150 for humanitarian aid, and +€36.5. million for the Asylum, Migration and Integration Fund;
• Energy and climate: inter alia, +€10 million for the Horizon Europe research programme, and +103.5 million for the Connecting Europe Facility, which funds the construction of high-quality and sustainable trans-European transport and energy networks;
• Consequences of the COVID-19 pandemic (health and better preparedness), culture and values: inter alia, +€41.4 million for the EU Civil Protection Mechanism (UPCM), and +€3 million for the Rights and Values Programme.

The European Public Prosecutor’s Office will receive additional funding of €2.5 million.

Note: The EU budget distinguishes between two appropriations: Commitments are the costs of all legal obligations contracted during the current financial year, possibly having consequences in subsequent years; payments cover expenditure actually paid out during the current year, possibly to implement commitments entered into in previous years.