The Banking Executive Magzine - July 2025 Issue

EU Budget 2026 INTRODUCTION The European Commission has pro- posed a 2026 EU budget of € 193.26 billion, with an additional € 105.32 billion expected to be disbursed under the NextGenerationEU recov- ery instrument. This budget aims to fund key European Union EU priori- ties such as climate action, digital transformation, and continued sup- port for Ukraine. The draft budget in- cludes policy highlights and strategic objectives, expenditure breakdowns across programs and institutions, rev- enue sources and financial forecasts, and performance statements for EU- funded programs. The Council of the European Union proposed € 186.24 billion in commitments and € 186.49 billion in payments This excludes special instruments outside the mul- tiannual financial framework. This article overviews the risks and opportunities of the EU 2026 budget followed by a SWOT (Strength, Weakness, Opportunity, Threat) Analysis. The wider impact of the EU 2026 budget is assessed and a future roadmap for Arab banks is depicted to navigate the challenges and op- portunities of the EU 2026 budget. OPPORTUNITIES AND RISKS OF EU 2026 BUDGET The EU 2026 budget presents a dy- namic mix of opportunities and risks, reflecting its ambition to tackle global volatility while advancing strategic priorities. the BANKING EXECUTIVE 32 ISSUE 199 JULY 2025 EU BUDGET 2026 SWOT ANALYSIS AND WIDER IMPACT BY DR SOHA MAAD