European Commission reviews its financial policy

The European Commission has confirmed that it is reviewing its financial policy by amending the Multiannual Financial Framework (MFF). Brussels has officially confirmed the information. The Commission has launched a public consultation with proposals expected in July. Forbes Bulgaria have presented the key facts and highlights surrounding the news.

Multiannual Financial Framework

The Multiannual Financial Framework (MFF) is a seven-year financial plan that sets out the EU’s maximum spending and priorities over that period. Annual budgets are adopted under the MFF, for example. The EU adopted the current MFF of €1.074 trillion in 2020. In addition to this, there is the special recovery fund “NextGenerationEU” (€750 billion), bringing the total package to €1.8 trillion.

Key Facts:

• According to information published by the European Commission, the next Multiannual Financial Framework, which is due to come into force in 2028 and run for the next seven years, will represent a new approach to the allocation of funds, which will significantly simplify and speed up the approval processes for various projects.
• Under the simplified budget, the Commission will align a single plan for each country with key reforms and investments, including regional funds and agricultural subsidies.
• The creation of three key funds, which will bring together more than 50 spending programmes, has also been confirmed. They will create a second European competitiveness fund to boost investment in key sectors and common projects, along with a renewed foreign policy fund that will align more closely with the EU’s strategic interests.
• The MFF should also include additional safeguards to protect the rule of law.
• The aim is to ensure flexibility to address new challenges.

“The next multiannual financial framework will give the bloc the opportunity to build a common vision for the future. It translates our shared priorities into tangible actions that matter to millions of citizens, businesses, regions and scientists. That is why we invite all Europeans to have their say through the public consultation, the citizens’ panel or the engagement platform. This is an invitation to shape a modern, ambitious and strengthened budget. Our challenges are also common goals: Together we are stronger” said European Commission President Ursula von der Leyen.

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