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Security and defence proposals for the multiannual financial framework 2021–2027

The increasing importance of security and defence cooperation in the EU is reflected in the European Commission’s proposal for the multiannual financial framework for 2021–2027. For the first time, security and defence would have their own heading in the EU budget. The security and defence heading (5) covers internal security, decommissioning and safety of nuclear activities, defence and crisis response. It accounts for roughly 2 % of the total financial framework, as proposed by the Commission.

In addition, the EU’s high representative proposed, with the support of the Commission, a new off-budget fund, called the European Peace Facility. It is included under heading 6: Neighbourhood and the world.

European Defence Fund

The European Defence Fund, with a budget of €11,5 billion, would account for approximately one-half of the funding under the Security and defence heading. The Fund would finance joint research and development projects in the field of defence technology and equipment.

The EU’s future framework programme on research and innovation, Horizon Europe, would also finance defence initiatives. It is included in the Commission’s proposal under heading 1: Single market, innovation and digital.

Military mobility

Under heading 1, a sum of €5.7 billion has been earmarked for the Connecting Europe Facility to enhance the EU’s strategic transport infrastructures to make them fit for military mobility.

Improving military mobility in Europe will contribute to a more credible European defence and bolster the EU’s ability to react quickly in the event of a crisis. Military mobility refers to a set of actions to allow seamless movement of troops and equipment across Europe as agreed by the parties concerned. An example is the movement of troops or equipment for the purpose of military exercises.

European Peace Facility

The proposed ceiling for the European Peace Facility (EPF) is €9.2 billion over a period coinciding with the multiannual financial framework 2021–2027.

The EPF would allow financing of the EU’s Common Foreign and Security Policy (CFSP) external action with military or defence implications. In practice this would mean funding of the common costs for military CSDP missions and operations and assisting in peacekeeping operations of partners such as the African Union.

The EPF aims to give the EU a more efficient and flexible ability to prevent conflicts and increase security. Its founding will be negotiated during Finland’s Presidency in autumn 2019.

MFF negotiations during Finland’s Presidency

The Council aims to finalise the negotiations on the next multiannual financial framework during Finland’s Presidency in autumn 2019.

Backgrounder: Multiannual financial framework 2021–2027

Council of the European Union: Multiannual financial framework 2021–2027: negotiations

European Commission: EU budget for the future

Inquiries

Anna Ylöstalo, Specialist, Ministry of Defence, tel. +358 295 140 027, anna.ylostalo(at)defmin.fi
Heli Lehto, First Secretary, tel. +358 295 350 165, [email protected]