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Multiannual financial framework 2014-2020

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.

Roadmap

2011: Commission adopts all the legislative proposals concerning the various policies

Commission proposals for the multiannual financial framework 2014-2020

Sector-specific proposals

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.

2012: Agreement between European Parliament and Council on the next MFF

The European Parliament and the Council – the EU's two legislative arms, will negotiate, amend and decide on these proposals.

2013: Adoption by co-decision of new legal bases

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.

Main figures

(Amounts in brackets refer to the amended European Commission proposalpdf)

  • The Council has agreed an overall ceiling of €959.988 billion (€1 033 billion) under five headings:
    • Smart and inclusive growth: 47% (48%) 
    • Sustainable growth: natural resources: 39% (37%) 
    • Global Europe: 6% (7%) 
    • Administration: 6% (6%)
    • Security and citizenship: 2% (2%) 
  • The commitment ceiling amounts to 1.00% (1.08%) of EU gross national income (GNI) compared to 1.12% for the 2007-2013 MFF.
  • The ceiling for payments equates to 0.95% (1.03%) of EU gross national income (GNI) compared to 1.06% for 2007-2013.

The breakdown of the 2014-2020 MFF Commission proposalpdf
The breakdown of the 2014-2020 MFF European Council agreementpdf

Funding and programmes: a path to attaining the Europe 2020 goals

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

  • Pillar I – direct payments and market expenditure – €281.8bn
  • Pillar II – rural development – €89.9bn
  • Food safety – €2.2bn
  • Most deprived persons – €2.5bn
  • Reserve for crisis in the agricultural sector – €3.5bn
  • European Globalisation Fund – Up to €2.5bn
  • Research and innovation on food security, the bio-economy and sustainable agriculture (in the Common Strategic Framework for Research and Innovation) – €4.5bn

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

  • Convergence regions – €162.6bn
  • Transition regions – €39bn
  • Competitiveness regions – €53.1bn
  • Territorial cooperation – €11.7bn
  • Cohesion fund – €68.7bn
  • Extra allocation for outermost and sparsely populated regions – €926m

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

  • European Social Fund – €84bn
  • Integrated Policy for Employment, Social Policy and Inclusion – €850m
  • European Globalisation Adjustment Fund – €3bn

Autonomous Budget Lines – €400m

Research and innovation (Common Strategic Framework for Research and Innovation (CSF)) – total proposed budget: €80bn

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

  • Development Cooperation Instrument – €20.6bn
  • Pre-accession instrument – €12.5bn
  • European Neighbourhood Instrument – €16.1bn
  • Partnership Instrument – €1bn
  • Instrument for Stability – €2.5bn
  • European Instrument for Democracy and Human Rights – €1.4bn
  • Common Foreign and Security Policy – €2.5bn
  • Humanitarian Aid Instrument – €6.4bn
  • Civil Protection and Emergency Response Capacity – €0.2bn
  • European Voluntary Humanitarian Aid Corps – €0.2bn
  • Instrument for Nuclear Safety Cooperation – €0.56bn
  • Macro-financial Assistance – €0.6bn
  • Guarantee fund for External Actions – €1.26bn
  • Emergency Aid Reserve – €2.45bn

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

  • Pension expenditure and European Schools – €12.2bn
  • Administrative expenditure of the institutions – €50.45bn

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

  • Energy – €9.1bn
  • Transport – €21.7bn
  • ICT/Digital – €9.2bn
  • Amounts earmarked in Cohesion Fund for transport infrastructures – €10bn

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

  • Education Europe – €15.2bn
  • Creative Europe – €1.6bn

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

  • Migration and Asylum Fund – €3.4bn
  • Internal Security Fund – €4.1bn

IT systems – €730m

Maritime and fisheries policy (European Maritime and Fisheries Fund (EMFF) and International Fisheries Agreements / RFMOs) – total proposed budget: €6.7bn

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

  • Food safety – €2.2bn
  • Health for Growth Programme – €396m

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

  • Justice Programme – €802m
  • Rights and Citizenship Programme – €387m

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

  • Civil protection – internal – €245m
  • Civil protection – external and European Emergency Response Capacity – €210m

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 fullpdf

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