The debate around the next Multiannual Financial Framework (FMM), the EU long term spending plan for 2014-2020, is starting in Brussels and is likely to dominate the EU scene well into the second half of 2012. The Multiannual Financial Framework (MFF) constitutes the major overhaul of the EU budget, negotiated at seven-year intervals. For each programming period, the MFF establishes the maximum amount and the composition of EU expenditure. It imposes a dual ceiling on expenditure: one for total expenditure and one for each category of expenditure. EU expenditure is currently defined under five headings: Sustainable Growth - this part of the budget is subdivided into (a) Competitiveness for Growth and Employment and (b) Cohesion for Growth and Employment - 44.4% of total expenditure Preservation and Management of Natural Resources (this includes the Common Agricultural Policy, Fisheries Policy and related areas) - 42.7%of total expenditure Citizenship, freedom, security and justice - 1.2% of total expenditure The EU as a global player - 5.7% of total expenditure Administration - 5.8% of total expenditure In the present MFF, Official development assistance (ODA) is included under Heading 4. The European Development Fund (EDF) that constitutes one third of European Commission’s ODA and covers the African, Caribbean and Pacific countries (ACP) is not currently included in the MFF. The possible integration of the EDF in the EU Budget (so called EDF budgetisation) will also be part of the debate on the future MFF. The European Commission is expected to launch a formal legislative proposal for the MFF in July 2011. Negotiations will then start between member states, the Council and the European Parliament. The process should draw to a close by the end of 2012 for the MFF to be implemented from 1 January 2014. The MFF will be adopted unanimously by the Council after receiving consent by the European Parliament, the Parliament’s decision will be taken by plenary vote. The discussion on the next MFF will take place at three different levels: The main political priorities for the next MFF are likely to include sustainable growth and jobs within the EU, climate and energy, the Common Agricultural Policy (CAP) reform and the role of the EU in the world. From a development perspective the MFF negotiations are a crucial opportunity to influence the discussion around the amount of resources that will be available for development. We would want to look at the percentage of the total budget allocated to Heading 4 and within that at the amount allocated to development, as well as quantity and quality of EC aid and the possibility of using freed up CAP funds for development. Another key point relates to the coherence between different elements of expenditure in the EU’s budget to ensure that expenditures in one category (e.g. CAP or fisheries) does not undermine expenditure in another category (e.g. development) and to climate change financing and the development, security and foreign policy nexus. Finally we would want to influence the discussion around the development financial instruments that will emerge from the MFF negotiations. The Bond European Policy Group together with CONCORD is planning to engage in the work around the next MFF targeting the European Commission, the European Parliament and the member states. For more information read the CONCORD Background Paper and Principles. If you would like to get involved please contact Romina Vegro.EU budget
Timeline and decision making process
Key issues
What is Bond doing?
Tuesday, 17 May 2011
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