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michael rogers's picture

At the end of 2020 a new financial framework shpuld be in place bfor the next 7 years. BREXIT and COVID have complicated the timing and content, but the proposal contains some useful guidance for future spending hotspots.

In the Commission proposal, the MFF consists of seven sectoral headings:

  1. Single market, innovation and digital
  2. Cohesion and values (includes Economic and Monetary Union, social cohesion and regional development)
  3. Natural resources and environment
  4. Migration and border management
  5. Security and defence
  6. Neighbourhood and the world
  7. European public administration

Furthermore, the proposal covers special instruments outside the MFF ceilings (Emergency Aid Reserve, Globalisation Fund, Solidarity Fund, Flexibility Instrument, European Peace Facility). If all these are included, the total budget for the MFF proposal is €1 161 billion (at 2018 current prices), corresponding to 1.14% of the GNI of the EU27.

The Commission is proposing significant increases in funding for research, development and innovation, migration management, and security and defence. The largest budget cuts are in agriculture and cohesion funding. As part of the MFF package, the Commission adopted a separate proposal for a regulation aimed at strengthening the link between access to MFF funding and respect for the rule of law. The MFF also includes about 40 separate Commission proposals for sectoral regulations.

On the revenue side of the budget (usually referred to as ‘own resources’) the Commission proposed modernising and simplifying the current system of own resources and introducing new sources of budgetary income.

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