On Wednesday, 16 July, the European Commission announced the EU’s Multiannual Financial Framework (MFF) for 2028-2034. The MMF -the EU’s long-term budget- is planned to amount to €2 trillion, with European Commission President von der Leyen stating, “The next MFF will be the most ambitious ever proposed. It is more strategic, more flexible, more transparent, and we’re investing more transparent, and we’re investing more in our capacity to respond and more in our defence.” Key features of the budget include:
- More flexibility – for the unexpected, or shift to new priorities
- Simplification – every euro should be easy to access
- European – achieve more than national budgets alone.
The budget is composed of the following pillars:
- Pillar 1, ‘The Fund,’ will consist of €894.2 billion for areas such as CAP income support, cohesion, and fisheries.
- Pillar 2, ‘Competitiveness’, will consist of €589.6 billion for aspects such as defence and space, as well as Horizon Europe.
- Pillar 3, ‘Global Europe’, will consist of €215 billion for external action and supporting Ukraine.
- Pillar 4, ‘Administration’, will consist of €100 billion for EU staff.
The new budget will bring together EU funds implemented by Member States and Regions under one coherent strategy, with cohesion and agricultural policy at its core. This strategy will be implemented through National and Regional Partnership plans to reduce regional disparities.
A new European Competitive Fund will invest in strategic technologies to benefit the entire Single Market, as recommended in the Letta and Draghi Reports. This will focus on clean transition and decarbonisation, digital transition, health, biotech, agriculture, bioeconomy, and defence and space.
The presentation of the MFF triggered significant negative reactions from both MEPs and various Member States (e.g. Germany). This indicates that we are just beginning a lengthy and challenging negotiation process, which could result in numerous changes to the proposal.
The Multiannual Financial Framework (MFF) for 2028-2034 represents a significant shift in the European Union’s long-term financial planning, emphasising competitiveness and resilience. Although the proposal of €2 trillion is highly ambitious, initial reactions from MEPs and key Member States reveal divisions and concerns about fiscal matters. Additionally, the diminished focus on traditional sectors such as health has sparked further debate. As negotiations continue, stakeholders should anticipate potential amendments and remain actively involved to influence outcomes that align with their policy priorities.
