# EU Sets 2027 Defense Budget

The European Parliament and Council of the European Union agreed on a €3.1 billion defense and security budget for 2027, including €650 million for Ukraine Support Loan funding. This is the final annual budget under the current Multiannual Financial Framework; negotiations over the 2028–2034 framework and uncertainty about future Ukraine financing may affect the timing and shape of later EU defense and technology funding. The announcement identifies no specific solicitations or contract awards, so it provides budget context rather than an immediate bid opportunity.

- The 2027 allocation signals continued EU defense and security spending, with a distinct funding component for Ukraine.
- Contractors and suppliers can use the agreed budget as forward-looking market context, but should not treat the announcement as an open procurement or award.
- Companies planning for EU-funded defense or technology work should account for uncertainty around the next Multiannual Financial Framework and Ukraine financing when forecasting future opportunities.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** November 11, 2026

### Government Entities
- European Union (EU)
- European Parliament
- Council of the European Union

### Key Quotes
> A collective commitment that all of us, without exception, will contribute fairly to closing [Ukraine’s financing] gap is an essential prerequisite for resolving this issue and for discussing any further matters, particularly those with financial implications.
> — Friedrich Merz, German Chancellor

> we need at least €70 billion more from you
> — Volodymyr Zelenskyy, President of Ukraine

### Sources
- [EU sets out $3.4B defense budget for 2027, boosts Ukraine spending - Breaking Defense](https://breakingdefense.com/2026/11/eu-sets-out-3-4b-defense-budget-for-2027-boosts-ukraine-spending) - Breaking Defense