The Multiannual Financial Framework (MFF) is the long-term budget of the European Union (EU), which sets spending limits for different policy areas over a given period, usually seven years. Currently, the current MFF runs from 2021 to 2027 and discussions for the next period 2028-2034 are already underway.
Although the MFF for the period 2028-2034 has not yet been formally adopted, discussions and proposals have already started. The European Commission has proposed expanding the European budget to address new priorities such as competitiveness, green transition and defence, as well as ensuring the reimbursement of the post-COVID recovery plan without sacrificing important areas. This proposal includes a structural reform that would transform cohesion and agriculture funds into a single plan per country, subject to policy reforms and targets.
For its part, Spain has proposed a permanent doubling of the EU budget, increasing it to 2 per cent of GDP per year from the current 1 per cent. This request is motivated by the need for joint investment in the ecological and digital transitions to maintain global competitiveness, as well as in defence to deter Russia and meet US demands.
Importantly, the adoption of the MFF requires the unanimity of all 27 member states and the consent of the European Parliament. Negotiations are often complex, as each country defends its national interests. Discussions on the MFF 2028-2034 are expected to intensify in the coming years, with the aim of reaching an agreement before the end of 2027.
The European Commission, under the leadership of Ursula von der Leyen, has proposed a significant structural reform for the next MFF. This reform seeks to merge more than 500 current funds, including cohesion and agriculture, into a single country plan. This approach aims to simplify management and link disbursements to the implementation of reforms and the achievement of specific objectives. However, this proposal has generated debate, as some regions fear losing autonomy and believe it could dilute cohesion policy, which is key to reducing economic disparities in Europe.
Main proposed changes:
Negotiations for the 2028-2034 MFF are expected to be complex. Some member states, such as Germany and the Netherlands, have shown reluctance to increase the EU budget. The European Commission is also exploring the introduction of new own resources, such as European taxes, to finance the new priorities without compromising essential areas.
Importantly, the adoption of the MFF requires the unanimity of all 27 member states and the approval of the European Parliament. Formal negotiations are scheduled to start in spring 2025, with the aim of reaching an agreement before the end of 2027.
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