The multiannual financial framework is essentially the European Union’s long-term budget plan. It sets the spending priorities and limits for the EU for several years, ensuring that the EU’s financial resources are in line with its political and economic goals. The multiannual financial framework sets out the structure for annual budgets and helps balance the competing interests of EU countries.
It allocates financial resources across a variety of areas, including funding for less developed regions, subsidies and rural development, humanitarian aid and investments in the green and digital transitions, and in EU foreign policy.

The Multiannual Financial Framework

The EU’s 2021-2027 long-term budget, together with NextGenerationEU, amounts to €1.8 trillion. This unprecedented response will help repair the economic and social damage caused by the coronavirus pandemic and aid the transition towards a modern, more sustainable Europe.

The package consists of the long-term budget (the 2021-2027 MFF multiannual financial framework) of €1.074 trillion, combined with the temporary recovery instrument NextGenerationEU of €750 billion.

It was adopted by the European Parliament on 16 December 2020.

MEPs negotiated major top-ups for EU flagship programmes like Health, Horizon (Research), Erasmus+ and supported also a roadmap introducing new sources of EU revenue. This roadmap is part of the ‘Interinstitutional Agreement’, a legally binding text. In addition to the contribution made as of 2021, based on how much unrecycled plastic a country has, the roadmap includes an ETS (Emissions Trading System)-based Own Resource (from 2023, possibly linked with a carbon border adjustment mechanism). It also includes a digital levy (from 2023) and a Financial Transaction Tax-based Own Resource, as well as a financial contribution that the corporate sector must make or a new common corporate tax base (from 2026).

Parliament also approved in its February 2024 session, the revision of the EU’s long-term budget.

This includes the €50 billion Ukraine Facility and the “Strategic Technologies for Europe Platform” (STEP), which aims to make the EU more strategically independent and to foster innovation. It also enables the EU budget to respond more effectively to evolving needs and unforeseen circumstances. In particular, it bolsters the EU’s budget to deal with migration and external challenges as well as the EU's crisis preparedness and budgetary flexibility. In line with Parliament’s demands, the revision introduces a mechanism to tackle escalating costs linked to the repayment of the NextGenerationEU recovery plan amid rising interest rates.

EU Multiannual Financial Framework 2021-2027

Rule of law is laid down in the EU treaties as one of the values on which the Union is based. It means that governments should be bound by law&nbsp;not to take arbitrary decisions, and that citizens should be able to challenge their actions in independent courts.

It also enshrines the fight against corruption, which unfairly favours some to the detriment of others, and the safeguarding of media freedom, thus ensuring that the public is properly informed about the work of government.

The EU has existing tools at its disposal to protect the rule of law. In&nbsp;September 2020, the European Commission published the first annual rule of law&nbsp;report monitoring both positive and negative developments with regard to the rule of law in all member states. In July 2021 the second edition of the report was published.

There is also&nbsp;dialogue on the rule of law in the Council.

If the Commission deems that a member state is violating EU law, it can start infringement proceedings that may lead to financial sanctions determined by the European Court of Justice. Another procedure, under Article 7 of the Treaty of the European Union, allows the Council to make recommendations or decide by unanimity on sanctions against a member state, including the suspension of membership rights.&nbsp;MEPs have argued that existing tools are insufficient.

​Under the new regulation, effective from January 2021, EU budget payments can be witheld from countries where established breaches of the rule of law compromise management of EU funds. At the same time, the EU ensures that final beneficiaries do not end up paying the bill.

Rule of law

Launched in 1962, the EU’s common agricultural policy (CAP) is a partnership between agriculture and society, and between Europe and its farmers. It aims to: support farmers and improve agricultural productivity, ensuring a stable supply of affordable food; safeguard European Union farmers to make a reasonable living; help tackle climate change and the sustainable management of natural resources; maintain rural areas and landscapes across the EU; keep the rural economy alive by promoting jobs in farming, agri-food industries and associated sectors.

The CAP is a common policy for all EU countries. It is managed and funded at European level from the resources of the EU’s budget. CAP 2023-27 To consolidate the role of European agriculture for the future, the CAP has evolved over the years to meet changing economic circumstances and citizens’ requirements and needs.

The CAP 2023-27 entered into force on 1 January 2023.&nbsp;Support for farmers and rural stakeholders across the 27 EU countries is based on the CAP 2023-27 legal framework and the choices detailed in the&nbsp;CAP Strategic Plans, approved by the Commission. The approved Plans are designed to make a significant contribution to the ambitions of the&nbsp;European Green Deal,&nbsp;Farm to Fork Strategy&nbsp;and&nbsp;Biodiversity Strategy.

Common agricultural policy (CAP)

The common agricultural policy (CAP) is one of the oldest common policies in the EU. Its significance is reflected in the proportion of the EU's budget devoted to it, representing approximately 40% of the total. Developed at a time when Europe was unable to meet most of its own food needs, it was necessary to encourage farmers to produce food by means of guaranteed prices. The policy has undergone regular reform and has evolved over the years.

As part of the preparation of the EU budget for 2021-2027, the European Commission put forward a new set of regulations to shape the future CAP on 1 June 2018. The proposal for a regulation on the financing, management and monitoring of the CAP provides the legislative framework for adapting the financing, management and monitoring rules to a new CAP delivery model.

See more on this topic by visiting our <a href="https://multimedia.europarl.europa.eu/en/common-agricultural-policy-8th-parliamentary-term_6503_pk">package</a> for the 8th parliamentary term.

Common agricultural policy (2019-2020)

Meeting of the EP Conference of Presidents in the presence of Ursula VON DER LEYEN, President of the European Commission

Press conference - Outcome of the MFF revision vote

BUDG committee - vote on EU multiannual financial framework (MFF)

Press conference on the Outcome of the MFF revision vote.

EP Plenary session - Joint debate on MFF revision

Press conference on the Reform of the EU's long-term budget MFF: outcome of the vote on Parliament's interim report

EP Plenary session - Mid-term revision of the Multiannual Financial Framework 2021-2027

Press conference on the Commission's proposals for the MFF revision

EP Plenary session - Upscaling the 2021-2027 Multiannual Financial Framework

Press conference on upscaling the 2021-2027 multiannual financial framework: a resilient EU budget fit for new challenges

Remarks on the closing of the 9th legislative term, MEPs vote on the following topics: Azerbaijan, notably the repression of civil society and the cases of Dr Gubad Ibadoghlu and Ilhamiz Guliyev; the proposed repeal of the law banning female genital mutilation in The Gambia; the new security law in Hong Kong and the cases of Andy Li and Joseph John; Freund (AFCO 22/04); Asimakopoulou (BUDG 22/04); Mureşan (A9-0174/2024); Mureşan (BUDG 22/04); Oetjen (A9-0409/2023); Kanko (A9-0411/2023); Ehler (A9-0343/2023); Russia's undemocratic presidential elections and their illegitimate extension to the occupied territories; new allegations of Russian interference in the European Parliament, in the upcoming EU elections and the impact on the Union; attempts to reintroduce a foreign agent law in Georgia and its restrictions on civil society and Iran’s unprecedented attack against Israel, the need for de-escalation and an EU response.

Voting session

MEPs vote on the following topics: Olbrycht, Marques (A9xxxx/2024) - Multiannual financial framework for the years 2021 to 2027; resolution Olbrycht, Marques Multiannual financial framework for the years 2021 to 2027 - resolution; Gahler, Gardiazabal Rubial (A9-0286/2023) - Establishing the Ukraine Facility; Fernandes, Ehler (A9-0290/2023) - Establishing the Strategic Technologies for Europe Platform (‘STEP’); Wölken (A9-0223/2023) - Protection of journalists and human rights defenders from manifestly unfounded or abusive court proceedings; Cicurel (A9-0278/2023) - Proposed amendments to Protocol No 3 on the Statute of the Court of Justice of the European Union; Weiss (A9-0290/2022) - Shipments of waste; and Fernández (A9-0344/2023) - Certain aspects of the minimum requirement for own funds and eligible liabilities.

Voting session: MMF for the years 2021 to 2027 and Ukraine Facility

Jan OLBRYCHT (EPP, PL) and Margarida MARQUES (S&D, PT), co-rapporteurs, speak to the press on the outcome of the MFF revision vote. This transcription is a result of an automatic process. Please check against delivery.

Press conference by Jan OLBRYCHT (EPP, PL) and Margarida MARQUES (S&D, PT), co-rapporteurs on the Outcome of the MFF revision vote

MEPs debate long-term funding for Ukraine, the “Strategic Technologies for Europe Platform” (STEP), and associated major changes to the multi-year EU budget. The revision of the EU’s long-term budget – the multiannual financial framework (MFF) – includes the €50 billion Ukraine Facility and the “Strategic Technologies for Europe Platform” (STEP) which aims to support EU competitiveness and resilience in strategic sectors. It also bolsters the EU’s budget to deal with migration and external challenges as well as the EU's crisis preparedness and budgetary flexibility. Opening statements by rapporteurs and Mathieu MICHEL, Belgian State Secretary and Johannes HAHN, European Commissioner for Budget and Administration. This transcription is a result of an automatic process. Please check against delivery.

Joint debate - MFF revision: opening statements by rapporteurs and Mathieu MICHEL, Belgian State Secretary and Johannes HAHN, European Commissioner for Budget and Administration

MEPs are set to approve long-term funding for Ukraine, the “Strategic Technologies for Europe Platform” (STEP), and associated major changes to the multi-year EU budget. The revision of the EU’s long-term budget – the multiannual financial framework (MFF) – includes the €50 billion Ukraine Facility and the “Strategic Technologies for Europe Platform” (STEP) which aims to support EU competitiveness and resilience in strategic sectors. It also bolsters the EU’s budget to deal with migration and external challenges as well as the EU's crisis preparedness and budgetary flexibility. Furthermore, in line with Parliament’s demands, the revision introduces a mechanism to tackle escalating costs linked to the repayment of the NextGenerationEU recovery plan amid rising interest rates. On Tuesday, Parliament will debate and vote on the corresponding texts recently agreed with the EU member states: MFF revision

Joint debate - MFF revision: Closing statement by Margarida MARQUES and Jan OLBRYCHT, Rapporteurs and by Johannes HAHN, European Commissioner for Budget and Administration

Joint debate - MFF revision: MEPs debate

Roberta METSOLA, EP President, Jan OLBRYCHT (EPP, PL) and by Margarida MARQUES (S&D, PT), MFF co-Rapporteurs, hold a press conference on on the Reform of the EU's long-term budget MFF - outcome of the vote on Parliament's interim report. This transcription is a result of an automatic process. Please check against delivery.

Press conference by Roberta METSOLA, EP President, Jan OLBRYCHT (EPP, PL) and by Margarida MARQUES (S&D, PT), MFF co-Rapporteurs on the Reform of the EU's long-term budget MFF: outcome of the vote on Parliament's interim report

Following the Commission’s proposal for a mid-term revision on the EU’s long-term budget (multiannual financial framework, MFF) the full house debate on the proposal of the Committee on Budgets to demand an extra €10 billion for 2024-2027. MEPs want to boost areas linked to external challenges, especially the Russian war against Ukraine and growing migration issues, the EU’s strategic autonomy, and enhance the EU’s crisis-response capabilities. Closing statements by Johannes HAHN, European Commissioner for Budget and Administration, Pascual NAVARRO RÍOS, Spanish Secretary of State for the European Union, by Jan OLBRYCHT (EPP, PL) and by Margarida MARQUES (S&D, PT), Rapporteurs

Mid-term revision of the MFF 2021-2027: closing statements by Johannes HAHN, EU Commissioner for Budget and Administration, Pascual NAVARRO RÍOS, Spanish Secretary of State for the EU, by Jan OLBRYCHT (EPP, PL) and by Margarida MARQUES (S&D, PT)

Multiannual financial framework 2021-2027 (T)

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