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Multiannual financial framework for 2021−2027

Finland’s Presidency aims to finalise the Council of the EU’s negotiations on the multiannual financial framework (MFF) in time for consideration by the European Council in autumn 2019. The Presidency’s task is to advance discussions on the MFF until handing the negotiations over to the European Council. The President of the European Council will then take charge.

In December 2018, the European Council set itself the objective of achieving agreement on the MFF in autumn 2019. Until November 2019, the President of the European Council is Donald Tusk. It is for him to determine when to seek agreement on the MFF in the European Council.

European Commission proposes more funding for research and innovation, migration management and security

In the Commission proposal, the MFF consists of seven sectoral headings:

  1. Single market, innovation and digital
  2. Cohesion and values (includes Economic and Monetary Union, social cohesion and regional development)
  3. Natural resources and environment
  4. Migration and border management
  5. Security and defence
  6. Neighbourhood and the world
  7. European public administration

Furthermore, the proposal covers special instruments outside the MFF ceilings (Emergency Aid Reserve, Globalisation Fund, Solidarity Fund, Flexibility Instrument, European Peace Facility). If all these are included, the total budget for the MFF proposal is €1 161 billion (at 2018 current prices), corresponding to 1.14% of the GNI of the EU27.

The Commission is proposing significant increases in funding for research, development and innovation, migration management, and security and defence. The largest budget cuts are in agriculture and cohesion funding. As part of the MFF package, the Commission adopted a separate proposal for a regulation aimed at strengthening the link between access to MFF funding and respect for the rule of law. The MFF also includes about 40 separate Commission proposals for sectoral regulations.

On the revenue side of the budget (usually referred to as ‘own resources’) the Commission proposed modernising and simplifying the current system of own resources and introducing new sources of budgetary income.

Negotiations began in May 2018

In May 2018, the Commission adopted its proposal on the EU’s long-term budget, the multiannual financial framework for 2021–2027. Until now, the MFF proposal has been discussed mainly within the Council’s ad hoc Working Party on MFF, the Committee of Permanent Representatives (Coreper) and the General Affairs Council.

Commission proposal for the multiannual financial framework for 2021–2027
EU budget: Commission proposes a modern budget for a Union that protects, empowers and defends (European Commission press release, 2 May 2018)
Multiannual financial framework for 2021−2027: negotiations, timeline

Inquiries

Satu Keskinen, Head of Unit, Prime Minister’s Office, tel. +358 295 160 302, satu.keskinen(at)vnk.fi