The European Union's 2027 budget agreement has raised the Southern Neighborhood fund, which finances aid to Morocco, by €26 million over the European Commission's draft. This brings the total envelope to roughly €1,810 million, to be divided among Morocco, Algeria, Egypt, Tunisia, and Palestine. The Spanish government prioritized the reinforcement of this fund to reach a deal with the European Parliament.
The Council scrapped a €50 million reserve that would have tied the fund's release to Morocco's cooperation against irregular migration. This move removes the only budgetary mechanism conditioning aid on border control. The European Parliament had pushed for more money for the borders of occupied Ceuta, occupied Melilla, and the Canary Islands.
The budget negotiation unfolded alongside a sharper political dispute over occupied Ceuta. The European Parliament had condemned what it termed an "attack" and an "invasion" of the city and called for an independent investigation. The president of occupied Ceuta, Juan Jesús Vivas, questioned the government's priorities, charging that the executive and the Socialist Party continue to show more interest in contenting Morocco than in protecting their integrity.
The European People's Party, led by Spanish politician Isabel Benjumea, secured an additional €25 million for the Border Management and Visa Instrument, raising it to €1,837 million. The EPP delegation tied the increase to the European response to migratory pressure and security concerns of Spanish-held cities, with an express mention of Ceuta in the text.
The parliamentary proposal of October had requested €40 million more for the Border Management and Visa Instrument and already carried an express mention of Ceuta, following a mass crossing of nearly 100,000 people at the end of July. The EPP also pushed for a further reference to the city in the security and defense section.
The deal added ten new posts for Frontex and €20 million more for the Internal Security Fund and military mobility. The additional €26 million recovers part of the planned cut to the Southern Neighborhood fund, yet the line still sits below its 2026 level, roughly €54 million lower, around 2.9%.
The Commission had proposed €1,784.1 million for 2027, and the Council maintained that figure unchanged in its initial position, a reduction of €79.66 million against 2026, or 4.27%. Other lines were reinforced in the same package, including an additional €52 million for competitiveness, with €21.5 million for Horizon Europe.
Key points
- The EU 2027 budget increases the Southern Neighborhood fund by €26 million.
- The fund's increase is part of a broader dispute over occupied Ceuta and migration cooperation.
- The budget agreement also includes additional funding for border management and security.
