The Multiannual Financial Framework (MFF) is the EU’s long-term budget that usually covers a seven-year period and sets the EU’s long-term priorities. Around 93% of the EU budget is reimbursed to citizens, businesses, regions and cities, farmers and universities. The process to reach an agreement for the next MFF 2021 - 2027 between the European Council - European Commission - European Parliament was kicked off in May 2019 with the presentation of the proposals of the European Commission. 

The European Commission’s overall proposal represents 1.11% of the EU-27’s GNI, which amounts to €1,134,583 billion in commitment appropriations. In this framework, budget increases are envisaged for border control, defense, internal and external security but also for cohesion and agricultural policy cuts. In addition, the European Commission proposes to modernise income revenue, including the introduction of various new categories of own resources based on revenue from the EU's emissions trading scheme, a contribution from Member States on the basis of plastic waste, and a share of the common consolidated corporate tax base.

 

In December 2019, the Ministers of EU member states discussed the negotiating framework with figures presented by the Finnish Presidency. The Presidency proposed €1,087 billion, which represents 1.07% of the EU-27’s GNI. The Council has not yet adopted a common position on its priorities for the MFF. In contrast, the European Parliament estimates that the new MFF should be set at 1.3% of EU-27 GNI rather than 1.11% or 1.07% proposed by the European Commission and the Finnish Presidency respectively. It also calls for further budgetary increases in areas such as youth, research and innovation, environment and climate, infrastructure and SMEs. Furthermore, the Members of the European Parliament, in a resolution adopted in October, issue a strong warning on risk of not reaching an agreement in time with the Council on the EU’s financial framework. To avoid problems, they called on the Commission to submit an emergency plan, since such delays could lead to the suspension of funding for EU programs in 2021.