Multiannual Financial Framework

The Multiannual Financial Framework (MFF) of the European Union is a seven-year framework regulating its annual budget. It is laid down in a unanimously adopted Council Regulation with the consent of the European Parliament. The financial framework sets the maximum amount of spendings in the EU budget each year for broad policy areas ("headings") and fixes an overall annual ceiling on payment and commitment appropriations.

Financial perspective for the 2007/2013 period

On December 15, 2005, EU members agreed to fix the common budget to 1.045% of the European GDP. UK Prime Minister Tony Blair accepted to review the British rebate, negotiated by Margaret Thatcher in 1984. French President Jacques Chirac declared that this increase in budget will permit Europe to "finance common policies" such as the Common Agricultural Policy - which represents about 44% of the EU's spending - or the Research and Technological Development Policy. However, France's demand to lower the VAT in catering was refused.

External links

• Financial Framework 2014 - 2020
• Financial Framework 2007 - 2013
• The budget explained by the European Commission
• Glossary provided by the European Commission
• BBC News: how the money is spent