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The multiannual financial framework (MFF, formerly ‘financial perspectives’) is a spending plan that translates the EU priorities into financial terms. It is not a seven-year budget, but the basis for the annual budgetary exercise; it limits expenditure over a fixed period and defines the maximum amounts available for each major category of spending. It therefore provides a political as well as budgetary framework for focusing resources and investments where needed.
The current MFF period started in 2007 and will end in 2013. Final agreement with the European Parliament is still needed for the new MFF to enter into force in January 2014, and the approximately 75 legislative acts covered by the MFF package have yet to be formally adopted.
Commission proposals for the multiannual financial framework 2014-2020
Detailed proposals for various policies (cohesion, agriculture, research and innovation, education, etc.) for the next period were adopted by the Commission before the end of 2011.
The European Parliament and the Council – the EU's two legislative arms, will negotiate, amend and decide on these proposals.
If no agreement is reached by the end of 2013, the 2013 ceilings will be extended to 2014 with a 2% inflation adjustment. Changes to the financial framework and instruments outside the financial framework would also be extended.
The breakdown of the 2014-2020 MFF Commission proposal
The breakdown of the 2014-2020 MFF European Council agreement
This spending plan seeks to increase growth and jobs in Europe, encourage greener agriculture and establish a more environment-conscious and internationally prominent Europe.
The proposals foresee funding increases for research and innovation, education and training and external relations. Specific funds will be used to fight crime and terrorism, and for migration and asylum policies. Climate spending is expected to increase some 20% across different policy fields.
A new fund, the Connecting Europe Facility, will fund cross-border infrastructure projects to strengthen the internal market and boost growth and jobs.
Agriculture and rural development – total proposed budget: €386.9bn
The continuing reform of the Common Agriculture Policy will result in a more modern, greener policy, contributing to the goals of the Europe 2020 strategy by unlocking potential in rural areas, developing local markets and jobs, accompanying the restructuring of agriculture and supporting farmers' income to maintain a sustainable agriculture sector throughout Europe.
Budget proposed by the European Commission:
Total 2014-2020: €386.9bn
Economic, social and territorial cohesion – total proposed budget: €376bn
To tie cohesion policy more systematically to the Europe 2020 objectives, the Commission proposes concentrating funding on a smaller number of priorities. Progress will also be monitored more closely. This will allow EU cohesion policy to make the greatest possible contribution to economic, social and territorial cohesion and the creation of growth and jobs.
Budget proposed by the European Commission:
Total 2014-2020: €376bn
Connecting Europe Facility – €40bn plus €10bn ring fenced inside Cohesion Fund
Employment and social affairs – total proposed budget: €88.3bn
Funding will be concentrated on the key priorities from the Europe 2020 strategy: employment promotion; investment in skills, education and life-long learning; social inclusion and the fight against poverty; and enhancing institutional capacity and efficient public administration.
Budget proposed by the European Commission:
Total 2014-2020: €88.3bn
Autonomous Budget Lines – €400m
The CSF will cover direct and indirect research, structured around three blocks in line with the Europe 2020 priorities: excellence in the science base; tackling societal challenges; and creating industrial leadership and competitive frameworks.
Budget proposed by the European Commission:
Total 2014-2020: €80bn
External action – total proposed budget: €70bn
In line with Europe 2020 objectives, EU policies addressing major global challenges such as climate change will be promoted. The Commission proposes to establish a proactive agenda of mutual interests with third countries, with a specific focus on strategic partners.
Budget proposed by the European Commission:
Total 2014-2020: €70bn
Total proposed budget under 11th EDF – €30.3bn
Administration – total proposed budget: €62.6bn
The Commission believes it is challenging but feasible to limit the growth of administrative costs over the next programming period based on 2013 ceilings. For the period 2014-2020, this would mean no increase in operational administrative expenditure, without prejudice to additional costs resulting from future enlargements.
Budget proposed by the European Commission:
Total 2014-2020: €62.6bn
Infrastructure – 'Connecting Europe' facility – total proposed budget: 40bn
Europe's economic future requires smart, sustainable and fully interconnected transport, energy and digital networks. They are a necessary condition for the completion of the European single market. They will also help meet the sustainable growth objectives outlined in the Europe 2020 Strategy.
Budget proposed by the European Commission:
Total 2014-2020: €40bn
Education and culture – total proposed budget: €16.8bn
Education and training are essential to the development and growth of the European economy and will play a crucial role in the collective pursuit of the Europe 2020 targets. Increased investment in human capital and the modernisation of education and training systems will help the EU to become a smart, sustainable and inclusive economy.
Budget proposed by the European Commission:
Total 2014-2020: €16.8bn
Home affairs – total proposed budget: €8.23bn
The Migration and Asylum fund will contribute to Europe 2020's employment targets, particularly in the context of an ageing population and a declining labour force.
Budget proposed by the European Commission:
Total 2014-2020: €8.23bn
IT systems – €730m
Reform of the Common Fisheries Policy will be accompanied by a reorientation of funding. Subsidies will be aligned with the Europe 2020 objectives. For example, incentives will encourage the fishing industry to reform, to innovate and to fish sustainably.
Budget proposed by the European Commission:
Total 2014-2020: €6.7bn
Health and consumers – total proposed budget: €2.75bn
The principal aims of the new Health for Growth programme are to protect citizens from cross-border health threats, to increase the sustainability of health services and to improve the health of the population, whilst encouraging innovation in health.
Budget proposed by the European Commission:
Total 2014-2020: €2.75bn
Consumers Programme – €175m
Competitiveness and SMEs – total proposed budget: €2.4bn
Creating the conditions for small businesses to flourish is part of the Europe 2020 strategy. The EU is active in unlocking the growth potential of small businesses, including through the targeted use of the EU budget. Activities address the key market failures that limit business growth – for example access to finance – and ensure that businesses are able to take full advantage of the enormous potential of the European single market.
Budget proposed by the European Commission:
Total 2014-2020: €2.4bn
Environment (LIFE+ programme) – total proposed budget: €2.4bn
Investments in environmental protection are investments in the modernisation of our societies and will help to transform Europe into a knowledge-based, resource-efficient economy.
Budget proposed by the European Commission:
Total 2014-2020: €2.4bn
Justice – total proposed budget: €802m
The Commission proposes to streamline programmes into a justice programme and a rights and citizenship programme. This approach will simplify funding and provide more coherence and consistency across the full range of activities funded.
Budget proposed by the European Commission:
Total 2014-2020: €416m
Climate action (LIFE+ programme) – total proposed budget: €800m
To meet the Europe 2020 goals and to help countries worldwide step up their efforts to combat climate change, the climate-related share of the future EU budget must be significantly increased, including investment in projects that are not exclusively climate-related, but which have a significant climate component. Climate mitigation and adaptation actions will be become a part of all the major EU programmes.
Budget proposed by the European Commission:
Total 2014-2020: €800m
Customs union and taxation (Customs 2020 and Fiscalis 2020) – total proposed budget: €690m
EU businesses and citizens face a variety of tax-related obstacles when engaging in cross-border activities. Such obstacles result from fragmentation and divergence in the way that the same transactions are treated in different EU countries. The removal of these barriers and further tax coordination between countries – while respecting their national competences in this area – is thus a priority for the EU's single market.
Budget proposed by the European Commission:
Total 2014-2020: €690m
Civil protection – total proposed budget: €455m
The EU's objectives for civil protection are to ensure better protection of people, the environment, property and cultural heritage in the event of disaster.
Budget proposed by the European Commission:
Total 2014-2020: €455m
Citizens (Europe for Citizens Programme) – total proposed budget: €203m
The 'Europe for Citizens' programme supports transnational projects with a focus on citizen participation and European identity. It is the only tool that enables citizens to engage on the general development of the European Union, whether at an institutional level – for example, the EU Treaties or the European Parliament elections – or on cross-cutting themes.
Budget proposed by the European Commission:
Total 2014-2020: €203m
Fight against fraud (HERCULE, PERICLES and AFIS programmes) – total proposed budget: €150m
In addition to the specific programme for anti-fraud, greater coherence in anti-fraud provisions across programmes will help ensure that the Union's commitment to fighting fraud is implemented effectively. Anti-fraud provisions will be included in each legal basis for the new generation of programmes 2014-2020.
Budget proposed by the European Commission:
Total 2014-2020: €150m
Read the policy fiches in full
Meeting on the MFF
13/11/2012
Meeting on the MFF