The Multiannual Financial Framework (MFF) is established for a period of seven years and sets the expenditure ceilings for different areas of EU action. The current long-term EU budget ends on 31 December 2027.
The European Parliament’s vision and expectations for the next EU budget are outlined in a resolution adopted in May this year.
Members of the European Parliament argue that the next Multiannual Financial Framework (MFF) must be significantly more ambitious than the current one, in order to meet the growing expectations of EU citizens in a context of global instability.
They consider that the current expenditure ceiling—1% of the gross national income of the EU-27—is insufficient to respond to the increasing number of crises and challenges.
They further note that, due to the United States stepping back from its role as a global guarantor of peace and security, expenditure will have to address Russia’s war of aggression against Ukraine, a highly challenging economic and social context, a competitiveness deficit, and the worsening climate and biodiversity crises.
In its February Communication, the Commission sets out a roadmap for the next Multiannual Financial Framework.
Among various political challenges mentioned are the remaining barriers within the single market, unfair international competition, high energy prices, shortages of skilled workers and labour, and the difficulty businesses face in accessing necessary capital. The global political and economic landscape poses challenges of unprecedented magnitude.
The Commission aims to present:
A more targeted budget: In order to ensure budgetary capacity, flexibility is essential to respond to a constantly changing reality. In this regard, the Commission believes that, to maximise the impact of EU funding—especially while reflecting on the future framework—greater targeting and simplification from the outset is crucial.
A simpler budget: Despite simplification measures introduced in the current financial framework, beneficiaries still struggle with the multitude of rules and criteria. Creating a genuine single entry point for all EU funding and advisory services in the next financial framework could make access easier for beneficiaries.
A more impactful budget: The EU has room to optimise the risk-bearing capacity of the EU budget in order to maximise the impact of public resources. The EU should make better use of its budget to reduce risk and mobilise additional national, private, and institutional funding.
A more flexible budget: The EU budget differs from national budgets, as it is primarily an investment budget planned on a multiannual basis. At the same time, it requires flexibility to respond to unforeseen needs (e.g. major economic crises or natural disasters) or to fund new priorities in line with fast-changing global conditions. In this context, the Commission sets as a priority the reduction of the rigidity inherent to the Multiannual Financial Framework.
Europe is undergoing a period of profound change — affecting society and security, the economy and the planet. The pace of change presents challenges that can only be addressed through joint action in a united Europe. According to the Commission, the next budget must play a central role in promoting the EU’s sustainable prosperity, strengthening defence and security, boosting competitiveness and social and territorial cohesion, and supporting the Union on its path to becoming the first climate-neutral continent in the world. It should continue to improve the quality of life and livelihoods of citizens, farmers, researchers, businesses and regions, both within and beyond Europe; and it must continue to safeguard the EU’s prosperity, competitiveness, sovereignty, security, resilience, preparedness, and global influence, while consistently upholding the highest standards of the rule of law and democratic values.
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