Multiannual Financial Framework
The Multiannual Financial Framework (MFF) of the European Union, also called the financial perspective, 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.[1]
Financial perspective for the 2007–2013 period
On 15 December 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.
2014-2020 Financial Framework
The Multiannual Financial Framework for 2014 to 2020 set a ceiling for expenditure at 1% of European Gross National Income, a reduction from the prior framework[2]. Per the European Council, €959.51 billion in commitments and €908.40 billion in payments for the given timeframe were alloted for expenditure. [3].
The framework did receive a number of amendments and changes during its effective period following a midterm review[4]. Particularly, the budget was shifted towards cushioning labor impacts resulting from the migration crisis straining the budget at the time[5].
2021 and Onwards
Negotiations for the new financial framework for the years 2021 through 2027 remain underway following stalled talks in late February 2020[6], prolonged further by shutdowns across EU nations provoked by the coronavirus pandemic.[7]
Negotiations currently center on modern and evolving issues and threats to European safety and stability, namely cyber-attacks, terrorism, disinformation, natural disasters, climate change, human rights violations, and gender inequality[8]. Debates related to the European Green Deal have also taken center stage, with considerable attention paid to the budget allocated for the project and the Just Transition Fund aimed at providing a speedy transition for more fossil fuel reliant regions.[9].
Belgium-based think tank Bruegel has noted that the hulking financial contributions necessary to finance the climate initiatives have remained a sticking point in debates[10], particularly for the German delegation[11].
References
- ^ Financial Framework 2014 - 2020
- ^ Technical adjustment of the financial framework for 2018 in line with movements in GNI (ESA 2010), COM(2017)0473, 15.9.2017.
- ^ https://www.consilium.europa.eu/en/policies/eu-budgetary-system/multiannual-financial-framework/mff-2014-2020/
- ^ ibid
- ^ ibid
- ^ https://www.consilium.europa.eu/en/policies/eu-budgetary-system/multiannual-financial-framework/mff-negotiations/
- ^ https://www.theparliamentmagazine.eu/articles/news/european-parliament-lockdown-over-coronavirus
- ^ https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018IP0075&from=GA
- ^ https://www.euractiv.com/section/economy-jobs/news/commission-warns-of-green-deal-failure-if-transition-fund-not-well-financed/
- ^ https://www.bruegel.org/2020/01/a-trillion-reasons-to-scrutinise-the-green-deal-investment-plan/
- ^ https://www.bruegel.org/2020/02/berlin-will-make-or-break-the-european-green-deal/
See also
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
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