Wednesday, October 14

UK Statement on the 2027 Unified Budget Proposal: Key Highlights for the OSCE

Appreciation for Progress on the Unified Budget Proposal

Thank you, Mr Chair.

We extend our gratitude to Secretary General Sinirlioğlu for his presentation of the inaugural Unified Budget Proposal for 2027. This endeavour necessitated significant effort from both him and his teams, for which we commend them.

The ratification of the 2026 Unified Budget marked a pivotal milestone, as it reinstated financial stability and positioned the organisation on a more sustainable trajectory. However, this accomplishment was not without its challenges, as it demanded difficult decisions. The structures of the OSCE have realised substantial, albeit often painful, savings, including reductions in staffing and operational expenses. It is crucial that these savings are now firmly integrated, enabling the organisation to plan effectively within a disciplined and sustainable framework.

Prioritising Operational Capacity for 2027

As representatives of the United Kingdom, we assert that the foremost priority for 2027 should be to safeguard the OSCE’s outward-facing and operational activities. This entails maintaining the capabilities of the autonomous institutions, field operations, and vital conflict-prevention functions to fulfil their mandates. These components are not ancillary to the organisation; rather, they are integral in delivering the collective commitments of participating States and in fostering enhanced security throughout the OSCE region.

It is imperative that we avoid additional reductions that disproportionately affect frontline delivery. We must not permit inflationary pressures to undermine the OSCE’s operational capacity just as the savings secured in 2026 begin to take effect. Concurrently, participating States should anticipate complete transparency, robust justification, and ongoing efforts to manage costs effectively, including those associated with staffing.

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Advocating for a Stable and Sustainable Budget

For these reasons, the United Kingdom contends that a budget ensuring stability—by factoring in the impact of inflation on the figures agreed for 2026—provides the most suitable foundation for 2027. In line with this rationale, we advocate for a stable Secretariat structure during this period of consolidation.

An inflation-adjusted budget would not only formalise the savings realised in 2026 but also preserve the organisation’s capability to deliver on its mandates. Ensuring continuity within the Secretariat would enable the OSCE to channel its limited resources towards implementation rather than diverting them towards internal reorganisation.

Emphasising Evidence-Based Reform

We are in favour of reforms that yield enhancements in effectiveness, accountability, or value for money. Changes to structures and processes should be grounded in evidence, strategically guided, and focused on tangible outcomes, with the direction provided by participating States.

The same rationale applies to discussions surrounding a Zero Nominal Growth budget. While there may be situations where this approach serves as a reasonable basis for agreement—particularly after conducting a more objective analysis of the OSCE’s processes and structures—the critical consideration remains what outcome best supports the organisation’s current priorities. In 2027, a further real-terms reduction may not be the optimal way to protect a field-oriented, outward-facing OSCE. Such a move could inadvertently impose pressure back on the very activities that participating States are keen to maintain.

The Need for Strategic Direction in Resource Allocation

Mr Chair, I would like to make one final observation. Decisions regarding resources and structures must adhere to a coherent strategic direction. Thus, agreeing upon a Chair-in-Office for 2027 is an essential preliminary step in advancing any further OSCE reform initiatives. We are in full agreement that this must be our foremost priority. The incoming Chair should possess the capability to guide the priorities of participating States and provide the OSCE with the necessary political leadership and clarity for the forthcoming year. Following this, we should also consider establishing a package of OSCE Chairs for 2028 and 2029 to lay the groundwork for planned delivery and strategic reform.

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The United Kingdom is committed to engaging constructively in the forthcoming budget presentations and discussions through the ACMF. We urge all participating States to collaborate towards achieving a timely consensus on a credible budget that solidifies the savings already attained and safeguards the operational impact of the OSCE.

Thank you, Mr Chair.

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