Commissioner Piotr Serafin addressed the European Parliament presenting the European Commission's proposal for the next Multiannual Financial Framework (MFF), outlining a €2 trillion budget designed to modernize and streamline EU funding. The proposal emphasizes three principles: simplification for easier access; strategic spending where EU funds can add value beyond national capacities; and flexibility to quickly respond to crises or shifting priorities.
Structural Changes and Core Spending Pillars
The Commission proposes consolidating the current seven budget headings into four: National and Regional Partnership Plans, European Competitiveness Fund, Global Europe, and Administration. This leaner structure aims to improve coherence in allocating funds. National and Regional Plans will focus on cohesion, regional development, agriculture, and increased funding for border, security, and migration, particularly supporting eastern regions near Ukraine, Russia, and Belarus with bonus allocations reflecting their specific challenges.
Promoting Innovation and Infrastructure
The Competitiveness Fund, bolstered by Horizon and the Connecting Europe Facility (CEF), secures €451 billion for research and innovation in clean technology, digital, biotech, defense, and food security. CEF's budget rises to €81 billion, including a tenfold increase in military mobility funding, signaling a push towards enhanced EU security infrastructure.
External Action and Crisis Mechanisms
Global Europe receives a €200 billion allocation for enlargement, humanitarian aid, and partnerships, with an additional €100 billion pledged outside the MFF for Ukraine's long-term recovery. The proposal introduces new flexibility instruments and a crisis mechanism capable of mobilizing loans up to €400 billion, responding to emergencies more efficiently. Civil protection and health preparedness will also be reinforced with a fivefold budget increase.
Revenue Reform and Political Oversight
To finance this increased spending without overburdening national budgets, Serafin proposes five new own resources, aiming to enhance transparency and fairness by ending existing corrections. The Commission also wants to strengthen the European Parliament's role through a new political steering mechanism to guide flexible resource allocation annually.
Stakeholder Impact
Farmers and fishermen benefit from a protected and ring-fenced budget of €302 billion, including a doubled agricultural reserve, supporting income stability amid food security concerns. Regional authorities receive clearer and more predictable funding frameworks for long-term investments, especially in eastern border regions.
Conversely, national governments face new revenue streams and reforms that could alter their fiscal contributions and budgeting approaches. Businesses in sectors tied to innovation, defense, and infrastructure stand to gain from consolidated investment streams but may also navigate heightened regulation linked to strategic EU priorities. Civil society and EU taxpayers benefit from stronger social spending (minimum 14% allocation) and reinforced crisis preparedness but will observe tighter financial oversight and new budgetary mechanisms.
Commissioner Serafin's proposal seeks to advance EU integration by strengthening budget flexibility and strategic spending while upholding the rule of law condition for funding, a key parliamentary concern. The challenge ahead lies in balancing ambitious investment with fiscal responsibility amid ongoing negotiations.