EU health plans on ice as capitals dispute budget

Many EU-funded health projects are on hold amid a dispute between the European Commission and capitals over support for NGOs. At least seven countries, led by France, Spain and Belgium have twice blocked the Commission’s 2026 EU health budget proposal because they say it doesn’t contain sufficient funding for health NGOs. These organizations represent patients, doctors and public health workers in EU health policy debates, typically in opposition to sectors like tobacco, alcohol and, sometimes, the pharmaceutical industry. The standoff means public tenders and grant applications for EU health projects — such as training more experts to assess medicines, beefing up health security and creating artificial intelligence platforms to monitor brain health — can’t yet go ahead. “Various stakeholders have expressed frustration over the delay” as they are already putting together consortiums to bid for projects included in the draft budget, a spokesperson for Public Health Sweden told POLITICO. The delay also has major implications for the EU’s health crisis response. The Commission’s Health Emergency Preparedness and Response Authority published its work plan in June for the coming year, which includes the expansion of ‘ever-warm’ vaccine production facilities and the creation of a new European Diagnostics Hub to develop cutting-edge technologies — all of which is on hold until the money can flow, unless covered by funds under the 2025 budget. European Commission spokesperson Eva Hrncirova declined to comment on the potential disruption to the EU’s health program, but told POLITICO the executive would “reflect” on the way forward. Root cause The standoff stems from the Commission’s decision to ax operating grants for NGOs, confirmed in July 2025. These had been in place in Europe since the early 1990s to enable civil society to participate in policymaking on a more equal footing with profit-driven entities. The Commission told POLITICO the grants were cut to reflect diminished funds for EU4Health after the budget fell from €5.8 billion to €4.6 billion in 2025 to reallocate funds for Ukraine. Health Commissioner Olivér Várhelyi also previously claimed behind closed doors that NGO operating grants were “illegal.” When countries voted on the Commission’s second proposal last week — which offered €1.3 million in NGO operating grants, having omitted them altogether from its original plan — at least 14 countries voted in favor of the plan, citing the urgent need for a budget. “The Public Health Agency of Sweden voted yes and we seconded the criticism that came from the other countries on funding for civil society, but saw that further delays in the work programme were not preferable,” the spokesperson for the Swedish public health authority said in a written comment. But countries standing firm with NGOs worry that ending support for their day-to-day functions will weaken democratic policymaking and leave lobbying as a preserve of private interests. Some NGOs have already shuttered operations in Brussels over the lack of funds. Health Commissioner Olivér Várhelyi previously claimed behind closed doors that NGO operating grants were “illegal.” | Thierry Monasse/Getty Images Spain and France have been the most vocal in their criticism, forming a blocking minority on the EU4Health Programme Committee that signs off on the budget, alongside Czechia, the Netherlands, Lithuania and Malta. Others, including Ireland and Luxembourg, abstained to signal their displeasure with the removal of NGO funds. NGOs play “a vital role in representing patients’ interests and ensuring a balanced policy debate alongside well-resourced industry stakeholders,” a spokesperson for Malta’s ministry of health told POLITICO. A joint statement read out on behalf of Belgium, Czechia, France, Luxembourg, Spain and the Netherlands at the July 31 meeting, and seen by POLITICO, called for “more adequate level of funding for operating grants