What is the EU Multiannual Financial Framework (MFF) and what changes can we expected for 2028-2034?

The Multiannual Financial Framework (MFF) is the European Union’s long-term budget. For a period of at least 5 and usually 7 years, it sets the maximum budget, allocates the funds over the EU’s priorities, and states how much the individual member states have to contribute. To a large extent, the MFF determines how much the member states will contribute to and receive from the EU in the years ahead. 

The 2021-2027 EU budget is being spent chiefly on cohesion policy to strengthen the economies of poorer regions and on agricultural policy. Both are good for more than €350 billion over the 7-year period. Research and innovation and neighbourhood policy (to increase the prosperity, security and stability of countries neighbouring the EU) are important items, both good for about €100 billion over 7 years. The remainder of the budget is being allocated to migration, defence, healthcare and the Union’s own expenses.

Owing to the great financial significance, negotiation of the MFF is often arduous and protracted. The first proposals are made by the European Commission about 2½ years before the following MFF period begins. The MFF is formally adopted by the Council of Ministers, which must agree unanimously with the proposal. The European Parliament votes by simple majority for or against the proposal but cannot amend it.

Besides the general MFF Regulation, legislative documents are adopted for individual programmes: these documents are specific legislative texts for new and established programmes and funds. The Commission proposes the legislative texts for the programmes. Depending on the programme, a proposal is discussed in the relevant Council formations. The Council for Education Youth, Culture and Sport, for instance, discusses all programmes in its policy field. The decision-making procedure for the programmes follows the ordinary legislative procedure. This means that both the Council and the Parliament decide jointly on the adoption of legislative texts.

When a new MFF is agreed, a decision is usually taken on the EU’s system of own resources. The Own Resources Decision lays down the EU’s funding regulations. Before the Own Resources Decision is taken, the Council must unanimously approve it, the European Parliament must issue a positive advice and each EU member state must approve the decision (i.e. ratify it) in accordance with its own legislative procedure. In the Netherlands, the House of Representatives must approve the Own Resources Decision.

When agreement is reached on the Regulation, the Own Resources Decision and the legislative texts for the programmes, a decision is taken on how much the EU may spend from its annual budget.

More information

• MFF in the Treaty on the Functioning of the European Union, article 312 (PDF)
• How the EU budget is adopted - European Union
• MFF factsheets - European Union

The European Council, consisting of the heads of state and government of the EU member states, agreed to the new Multiannual Financial Framework on 17 December 2020. The MFF is a package of €1,074.3 billion. A day later, on 18 December 2024, the European Council reached agreement with the European Parliament on the economic recovery plan NextGenerationEU, to alleviate the impact of the COVID-19 crisis. The recovery plan amounts to €1,824.3 billion (2020 prices).

When the overall EU budget and its allocation to the EU’s priorities are known at EU level, the funds under shared management, such as the agricultural funds and structural funds, are allocated by means of the national envelope. The national envelope is the maximum amount each member state can claim from the funds. The national envelopes are appended to the respective funds regulations.

The Netherlands is entitled to approximately €8 billion in total for 2021-2027. At more than €5.5 billion, the agricultural funds (EAGF and EAFRD) account for the lion’s share.

Besides the funds under shared management, funds under direct management are allocated directly to projects or institutions funded by the Commission without the intervention of the government. Most of these budgets are spent on research and innovation projects in the Horizon Europe programme. The Horizon 2020 dashboard indicates that Dutch organisations and institutions had received grant funding of €3.39 billion by the end of October 2024 out of the funds available for 2021-2027. This funding is not subject to a national envelope because the money is allocated on the basis of the Commission’s assessment of the grant applicants’ project proposals.

The European Commission will present its first proposals for the next MFF in mid-2025. We will consider the proposals’ implications, changes from the current period, their national and EU reception and the Netherlands’ contribution to the Council’s deliberations on the next MFF here when the Commission presents its proposals.

With a view to the negotiation of the next MFF, the Court of Audit will publish a report on performance-based funding in September 2025.