Commission publishes Communication on next MFF

On 12 February 2025, the European Commission published a Communication on ‘The Road to the next Multiannual Financial Framework'. The document outlines the key policy and budgetary challenges that will shape the design of the next Multiannual Financial Framework (MFF) which will start in 2028. This Communication forms the basis for reflections on how to adapt the EU's long-term budget to evolving needs and priorities.

According to the Commission, a new approach for a modern EU budget is required ("The status quo is not an option"). The new approach should be "simpler, more focused and more impactful", with more flexibility and more coordination between the EU and the national level via a 'Competitiveness Coordination Tool'. This new approach shoud include "new own resources as a matter of urgency" and includes should focus on five key points:

• A plan for each country with key reforms and investments, with a strengthened cohesion and growth policy designed and implemented in partnership with national, regional, and local authorities.
• A European Competitiveness Fund establishing an investment capacity that will support strategic sectors and technologies critical to the EU competitiveness, including research and innovation, and Important Projects of Common European Interest. The Fund’s comprehensive architecture will allow it to accompany European projects along the entire investment journey, from research, through scale-up, industrial deployment, to manufacturing. It will also help to leverage and de-risk private investment.
• A revamped external action financing should be more impactful and targeted and aligned with strategic interests, contributing to a new foreign policy.
• Strong safeguards on the protection of the rule of law should also be built into the budget.
• Strengthened and modernised revenues, notably via new own resources, to ensure sufficient and sustainable financing for common European priorities.

Regarding R&I, the Communication states that regarding the status quo of R&I funding, the 3% target has not been reached, and deplores the lack of focus: "Public spending on research and innovation in Europe lacks scale – as only one tenth of it takes place at European level, and it is spread across many fields – and is insufficiently focused on breakthrough innovation.” The Communication also points out lack of private funding and concludes that "Overall, Europe’s future competitiveness will depend on our ability to start a new age of invention and ingenuity, putting research and innovation, science and technology, at the centre of our economy.”

The Commission will carry out a broad consultation process, with a series of thematic consultations starting today and open for twelve weeks. These include a consultation on EU funding for competitiveness. The Commission will also hold structured dialogues with Member States' governments, regional entities and citizens. The Commission will present its formal proposal for the next Multiannual Financial Framework in July 2025.

For more information:

EC press release

Communication on the road to the next multiannual financial framework