Negotiations relating to the EU’s Multiannual Financial Framework (MFF 2021-2027)

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Publication Date 2019-
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Summary:

Overview, information and analyses relating to negotiations positions of the European Commission, the European Parliament and the Council of the European Union on the EU's Multiannual Financial Framework (MFF) for the period 2021-2027, as well as related political discussions.

Further information:

The Multiannual Financial Framework (MFF) sets the maximum level of resources for each of the seven major headings of EU spending for a period of seven years. In addition to a financial plan, it sets the EU’s long-term priorities.

In May 2018, the European Commission presented a package of legislative proposals for the MFF relating to the period 2021-2027. The proposed multiannual budget amounts to 1.11% of EU27 Gross National Income (GNI). The European Parliament argued that the proposal was insufficient and its position - adopted in November 2018 - estimated that the ceiling should amount to 1.3% of EU27 GNI. The Council of the European Union was not yet able to agree on a common position due to disagreements between Member States on size and other aspects of the MFF. In October 2019, the Parliament adopted a Resolution urging the Member States to engage in negotiations, as well as confirming and updating where needed its negotiating mandate. On the same month, the European Commission also adopted a Communication highlighting the need for further work to be done by the co-legislators.

The matter was discussed by the European Council in October 2019, but no agreement was reached on a negotiating position. On 5 December 2019, the presidency of the Council of the European Union presented a so-called 'Negotiating Box' which included a budget ammounting to 1.07% of the EU27 GNI, ahead of a meeting of the European Council. Yet again, no agreement was reached between national leaders. Member States appeared generally divided between those vowing to shrink the overall multiannual budget, and those who fear such decision would affect provisions on agriculture and cohesion policy.

On 14 February, the President of the European Council unveiled a new proposal for discussion which sets national contributions at 1.074% of GNI. A special European Council meeting to discuss the MFF 2021-2027 was held on 20-21 February. The European Parliament's plenary session held a discussion ahead of that summit on 12 February. Media reported on the difficulties in finding a compromise between those rejecting substantial cuts in certain areas and the so-called 'Frugal Four' defending a stricter line which would not go beyond 1% GNI. Despite the efforts, the national leaders were not able to reach an agreement on the long-term budget.

Related Link(s)
Commentary and Analysis
Politico, 04/11/2019: The EU’s budget tribes explained https://www.politico.eu/article/the-eus-budget-tribes-explained/
Politico, 02/12/2019: EU budget fight heats up https://www.politico.eu/article/eu-budget-fight-heats-up-council-of-the-eu-finnish-presidency-european-commission/
Politico, 06/12/2019: What rich countries get wrong about the EU budget https://www.politico.eu/article/what-rich-countries-get-wrong-about-the-eu-budget-east-west-euroskeptic-cohesion-policy/
Politico, 12/12/2019: EU budget: Value for money https://www.politico.eu/sponsored-content/eu-budget-value-for-money/
ECFR: Commentary, 13/12/2019: Table scrap: Budget talks in a fragmented Europe https://www.ecfr.eu/article/commentary_table_scrap_budget_talks_in_a_fragmented_europe
EPRS: Briefing, January 2020: The 2021-2027 Multiannual Financial Framework in figures https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)646131
Politico, 02/02/2020: Costa grabs role as regions’ champion in EU budget fight https://www.politico.eu/article/antonio-costa-portugal-regions-champion-eu-budget-fight/
EPRS: Briefing, February 2020: Financing the European Union [What Think Tanks are thinking] https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)646167
Politico, 14/02/2020: 8 takeaways from the new EU budget proposal https://www.politico.eu/article/8-takeaways-from-the-new-eu-budget-proposal/
The Guardian, 16/02/2020: ‘Fighting like ferrets in a bag’ as EU tries to plug Brexit cash hole https://www.theguardian.com/world/2020/feb/16/stressed-heads-to-start-brussels-budget-talks-post-brexit
EPRS: Briefing, February 2020: The European Council and the 2021-27 Multiannual Financial Framework https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2020)631732
EurActiv, 18/02/2020: EU budget summit: Is the EU risking another ‘no deal’? https://www.euractiv.com/section/economy-jobs/opinion/eu-budget-summit-is-the-eu-risking-another-no-deal/
Politico, 18/02/2020: EU budget talks: The essential guide https://www.politico.eu/article/eu-budget-talks-the-essential-guide/
EUObserver, 18/02/2020: What the Dutch don't get about the EU budget https://euobserver.com/opinion/147439
EurActiv, 19/02/2020: EU faces tough post-Brexit test with 2021-2027 budget https://www.euractiv.com/section/economy-jobs/linksdossier/eu-faces-tough-post-brexit-test-with-2021-2027-budget/
Politico, 19/02/2020: 4 big fights in Europe’s budget battle https://www.politico.eu/article/eu-budget-battle-big-fights-cohesion-funding-agriculture/
Forbes, 20/02/2020: Is The EU Budget Ready To Back The Green Deal? https://www.forbes.com/sites/emanuelabarbiroglio/2020/02/20/is-the-eu-budget-ready-to-back-the-green-deal/#377ed3992366
EUObserver, 20/02/2020: These are the crunch issues at the EU budget summit https://euobserver.com/economic/147506
CEPS: In Brief, 20/02/2020: Towards a new MFF https://www.ceps.eu/ceps-publications/towards-a-new-mff/
Politico, 20/02/2020: Mario Monti: Don’t let the ‘frugals’ rule the budget https://www.politico.eu/article/mario-monti-dont-let-the-frugals-rule-the-budget/
Politico, 20/02/2020: Parliament’s EU budget strategy: Go big, then go home https://www.politico.eu/article/european-parliament-david-sassoli-eu-budget-strategy-go-big-then-go-home/
Politico, 21/02/2020: The EU budget in 7 charts https://www.politico.eu/article/the-eu-budget-in-7-charts-mff/
Euro|topics, February 2020: Tough negotiations over EU budget https://www.eurotopics.net/en/235462/
Reuters, 20/02/2020: Frugal Four vs Friends of Cohesion: The EU's baffling budget battle https://uk.reuters.com/article/idUKKBN20E1NC
Euro|topics, February 2020: EU summit ends without agreement https://www.eurotopics.net/en/235803/

News
EurActiv, 18/10/2019: Summit concludes with no progress on EU’s long-term budget https://www.euractiv.com/section/future-eu/news/summit-concludes-with-no-progress-on-eus-long-term-budget/
EUObserver, 18/10/2019: Deep divisions on display over post-Brexit EU budget https://euobserver.com/economic/146342
Reuters, 18/10/2019: EU leaders split over $1.2 trillion post-Brexit budget https://uk.reuters.com/article/idUKKBN1WX0BZ
Politico, 30/10/2019: Commission gives up on EU budget deal in 2019 https://www.politico.eu/article/commission-gives-up-on-eu-budget-deal-in-2019/
EurActiv, 30/10/2019: Oettinger fires at ‘misleading’ EU budget figures https://www.euractiv.com/section/eu-priorities-2020/news/oettinger-fires-at-misleading-eu-budget-figures/
EurActiv, 06/11/2019: EU faces budget deadlock as national positions drift further away https://www.euractiv.com/section/economy-jobs/news/eu-faces-budget-deadlock-as-national-positions-drift-further-away/
EurActiv, 04/12/2019: Finland aims to put €10bn more in CAP’s second pillar https://www.euractiv.com/section/agriculture-food/news/finland-aims-to-put-e10bn-more-in-caps-second-pillar/
EurActiv, 04/12/2019: Von der Leyen criticises Finnish presidency’s EU budget proposal https://www.euractiv.com/section/future-eu/news/von-der-leyen-criticises-finnish-presidencys-eu-budget-proposal/
Politico, 04/12/2019: Von der Leyen hits out at ’severe cuts’ in EU budget plan https://www.politico.eu/article/von-der-leyen-hits-out-at-severe-cuts-in-eu-budget-plan/
Total Croatia News, 13/12/2019: Croatia Tasked with Defining European Council's Position for Conference on Future of Europe https://www.total-croatia-news.com/politics/40231-future-of-europe
Politico, 25/01/2020: Charles Michel calls special summit on EU budget https://www.politico.eu/article/charles-michel-calls-special-summit-on-eu-budget/
EurActiv, 27/01/2020: Divided EU leaders to hammer out budget at February summit https://www.euractiv.com/section/future-eu/news/divided-eu-leaders-to-hammer-out-budget-at-february-summit/
Politico, 01/02/2020: 15 countries fight to protect EU cohesion funding https://www.politico.eu/article/eu-budget-cohesion-funding-summit-portugal/
Deutsche Welle, 01/02/2020: Austria: Sebastian Kurz threatens to veto EU post-Brexit budget https://p.dw.com/p/3X8G0
EurActiv, 03/02/2020: In Portugal, 15 ‘cohesion countries’ call for stronger EU budget https://www.euractiv.com/section/economy-jobs/news/in-portugal-15-cohesion-countries-call-for-stronger-eu-budget/
NL Times, 06/02/2020: Netherlands will not contribute more to EU budget, Dutch PM says https://nltimes.nl/2020/02/06/netherlands-will-contribute-eu-budget-dutch-pm-says
Politico, 06/02/2020: EU budget battle joined ahead of summit showdown https://www.politico.eu/article/eu-budget-battle-joined-ahead-of-summit-showdown/
Reuters, 07/02/2020: EU goes into meeting frenzy ahead of Feb. 20 summit on next seven-year budget https://uk.reuters.com/article/idUKKBN20125J
EurActiv, 12/02/2020: Commission warns of Green Deal failure if Transition Fund not well financed https://www.euractiv.com/section/economy-jobs/news/commission-warns-of-green-deal-failure-if-transition-fund-not-well-financed/
Euronews, 12/02/2020: Give me Green Deal funds or I'm not backing budget, warns EU chief Ursula von der Leyen https://www.euronews.com/2020/02/12/give-me-green-deal-funds-or-i-m-not-backing-budget-warns-eu-chief-ursula-von-der-leyen
EurActiv, 14/02/2020: Michel offers flexible EU budget to convince sceptics https://www.euractiv.com/section/economy-jobs/news/michel-offers-flexible-eu-budget-to-convince-sceptics/
The Irish Times, 14/02/2020: Charles Michel proposes EU budget compromise ahead of summit https://www.irishtimes.com/news/world/europe/charles-michel-proposes-eu-budget-compromise-ahead-of-summit-1.4174226
EurActiv, 17/02/2020: CAP spending faces further €5bn cut in bloc’s budget blueprint https://www.euractiv.com/section/agriculture-food/news/cap-spending-faces-further-e5bn-cut-in-blocs-budget-blueprint/
EUObserver, 17/02/2020: Net payer countries push back on EU budget plans https://euobserver.com/economic/147464
Agriland, 17/02/2020: Inside EU budget documents: Proposal to slash CAP by between 14% and 19% https://www.agriland.ie/farming-news/inside-leaked-eu-budget-documents-proposal-to-slash-cap-by-between-14-and-19/
EurActiv, 17/02/2020: Poland’s just transition bonus cut 50% under latest EU budget proposal https://www.euractiv.com/section/climate-environment/news/polands-just-transition-bonus-cut-50-under-latest-eu-budget-proposal/
Bloomberg, 17/02/2020: Germany Demands Compromise From All Sides in EU Budget Talks https://www.bloomberg.com/news/articles/2020-02-17/germany-demands-compromise-from-all-sides-in-eu-budget-talks
Dutchnews.nl, 18/02/2020: The Netherlands sets out ‘frugal’ position ahead of key EU budget summit https://www.dutchnews.nl/news/2020/02/the-netherlands-sets-out-frugal-position-ahead-of-key-eu-budget-summit/
EUObserver, 18/02/2020: EU countries enter final phase of budget talks https://euobserver.com/economic/147480
Reuters, 18/02/2020: French farmers sweat over subsidies in post-Brexit EU budget talks https://uk.reuters.com/article/idUKKBN20C2BK
Agriland, 18/02/2020: MFF proposal ‘disappointing’ – EU Parliament budget committee https://www.agriland.ie/farming-news/mff-proposal-disappointing-eu-parliament-budget-committee/
EurActiv, 19/02/2020: Carbon levy, plastic tax hailed as potential game-changers for EU budget https://www.euractiv.com/section/energy-environment/news/carbon-levy-plastic-tax-hailed-as-potential-game-changers-for-eu-budget/
EurActiv, 19/02/2020: Pressure mounts on EU leaders to reach MFF deal within days https://www.euractiv.com/section/future-eu/news/pressure-mounts-on-eu-leaders-to-reach-mff-deal-within-days/
Politico, 19/02/2020: Charles Michel plots ‘miracle’ EU budget deal https://www.politico.eu/article/charles-michel-plots-miracle-europe-budget-deal-mff/
EUObserver, 19/02/2020: EU leaders face major clash on rule of law budget link https://euobserver.com/political/147495
The Guardian, 19/02/2020: Tensions mount between EU members ahead of budget talks https://www.theguardian.com/world/2020/feb/19/tensions-mount-between-eu-members-ahead-of-budget-talks
The Wall Street Journal, 19/02/2020: EU Nations Square Off for Budget Clash After Britain’s Exit https://www.wsj.com/articles/eu-nations-square-up-for-budget-clash-after-britains-exit-11582138364
Politico, 19/02/2020: Merkel: EU budget talks will be ‘very tough and difficult’ https://www.politico.eu/article/merkel-eu-budget-talks-will-be-very-tough-and-difficult/
BBC News, 20/02/2020: Brexit complicates EU budget plans https://www.bbc.co.uk/news/business-51560940
EurActiv, 20/02/2020: Parliament ready to flex its muscles over EU budget in wake of Brexit https://www.euractiv.com/section/economy-jobs/news/parliament-ready-to-flex-its-muscles-over-eu-budget-in-the-wake-of-brexit/
RTÉ News, 20/02/2020: Michel confident EU leaders will make progress on budget https://www.rte.ie/news/2020/0220/1116443-eu-budget/
Politico, 20/02/2020: Struggle over Rail Baltica spills into Brussels budget fray https://www.politico.eu/article/struggle-over-rail-baltica-spills-into-brussels-budget-fray/
EUObserver, 20/02/2020: Unhappy EU leaders begin budget haggle https://euobserver.com/economic/147513
Deutsche Welle, 20/02/2020: Leaders roll up for the EU budget circus https://p.dw.com/p/3Y5cn
EUObserver, 21/02/2020: Plastic and carbon proposals to help plug Brexit budget gap https://euobserver.com/green-deal/147515
Politico, 21/02/2020: Summit fails to narrow differences over EU’s seven-year budget https://www.euractiv.com/section/future-eu/news/summit-fails-to-narrow-differences-over-eus-seven-year-budget/
EUObserver, 21/02/2020: Sassoli repeats EU budget rejection warning https://euobserver.com/economic/147514
RTÉ News, 21/02/2020: Significant gaps as EU budget negotiations to resume https://www.rte.ie/news/europe/2020/0221/1116657-brussels-budget/
Dutchnews.nl, 21/02/2020: Dutch stick to their guns over EU budget, no progress so far says Rutte https://www.dutchnews.nl/news/2020/02/dutch-stick-to-their-guns-over-eu-budget-no-progress-so-far-says-rutte/
Associated Press, 20/02/2020: 4 EU nations refuse to budge on budget; new summit likely https://apnews.com/0948877e4bea92c47e3886d8dbcc33ad
Deutsche Welle, 21/02/2020: European Union leaders fail to agree on new 7-year budget https://p.dw.com/p/3Y9qH
BBC News, 21/02/2020: EU budget: Talks end amid stand-off between 'frugal' and other nations https://www.bbc.co.uk/news/world-europe-51594002
The Guardian, 21/02/2020: EU summit collapses as leaders struggle to fill €75bn Brexit hole https://www.theguardian.com/world/2020/feb/21/eu-leaders-at-odds-over-filling-brexit-shortfall
Reuters, 21/02/2020: Macron to farmers: France stood firm on EU farm budget https://www.reuters.com/article/idUSL5N2AM056
The Irish Times, 21/02/2020: EU budget: Varadkar says Ireland willing to pay more but not at farmers’ expense https://www.irishtimes.com/news/world/europe/eu-budget-varadkar-says-ireland-willing-to-pay-more-but-not-at-farmers-expense-1.4181125
EUObserver, 21/02/2020: EU leaders struggling to break budget deadlock https://euobserver.com/economic/147528
EurActiv, 21/02/2020: EU leaders fail to agree on first post-Brexit budget as divisions grow https://www.euractiv.com/section/economy-jobs/news/eu-leaders-fail-to-agree-on-first-post-brexit-budget-as-divisions-grow/
Reuters, 21/02/2020: 'Differences too big,' says Merkel as EU budget summit fails https://uk.reuters.com/article/idUKKBN20F2KV
EUObserver, 21/02/2020: No breakthrough at EU budget summit https://euobserver.com/economic/147529

Official
General Secretariat of the Council: Multiannual financial framework for 2021-2027: negotiations https://www.consilium.europa.eu/en/policies/eu-budgetary-system/multiannual-financial-framework/mff-negotiations/
European Commission: EU budget for the future https://ec.europa.eu/commission/future-europe/eu-budget-future_en
European Parliament: Multiannual Financial Framework: Q&A https://www.europarl.europa.eu/news/en/press-room/20200115IPR70326/
European Parliament: Useful information on the next Multiannual Financial Framework (MFF) https://www.europarl.europa.eu/news/en/press-room/20191204IPR68267/
European Parliament: Legislative Train Schedule: MFF - 2021-2027 MFF https://www.europarl.europa.eu/legislative-train/theme-budgets-budg/file-mff-2021-2027-mff
European Parliament: Legislative Observatory: Resolution on the 2021-2027 multiannual financial framework and own resources: time to meet citizens' expectations https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2019/2833(RSP)
EPRS: Briefing, June 2019: Multiannual financial framework for the years 2021 to 2027: The future of EU finances https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2019)637979
European Parliament: Press Release, 10/10/2019: Delaying long-term EU investment plan would harm citizens and businesses https://www.europarl.europa.eu/news/en/press-room/20191007IPR63549/
Finnish Council Presidency: Press Release, 05/12/2019: Finnish Presidency proposes greater EU investment in building a sustainable future https://eu2019.fi/en/article/-/asset_publisher/suomi-esittaa-puheenjohtajamaana-eu-lle-lisapanostusta-kestavan-tulevaisuuden-rakentamiseen
European Parliament: Press Release, 07/02/2020: Long-term EU budget: The Union’s ambitions must be matched with sufficient reliable funding https://www.europarl.europa.eu/news/en/press-room/20200207IPR72102/
European Parliament: Press Release, 12/02/2020: More than money: the long-term EU budget is a tool for Europe’s future https://www.europarl.europa.eu/news/en/press-room/20200206IPR72013/
European Commission: News, 12/02/2020: Von der Leyen on EU long-term budget: our opportunity to make Europe fit for the future https://ec.europa.eu/commission/presscorner/detail/en/ac_20_241
European Commission: Speech by President von der Leyen in the Plenary of the European Parliament at the debate on the special meeting of the European Council of 20 February 2020 on the Multiannual Financial Framework (12 February 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_239
European Parliament: Press Release, 19/02/2020: President Michel’s MFF proposal not acceptable for Parliament https://www.europarl.europa.eu/news/en/press-room/20200218IPR72822/

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