On the Revision of the EU’s long-term budget 2021-2027 (MFF)
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On the Revision of the EU’s long-term budget 2021-2027 (MFF)

The EU’s long-term budget, the Multiannual Financial Framework (MFF), sets the annual limits on EU commitments and payments in all policy areas.

The final agreement reached on 17 December 2020 was unprecedented. It consisted of the long-term budget, the 2021-2027 MFF, made up of €1.211 trillion in current prices (€1.074 trillion in 2018 prices), combined with the temporary pandemic recovery instrument, NextGenerationEU, of €806.9 billion (€750 billion in 2018 prices).

Since the current MFF was adopted, the EU has faced a series of unprecedented and unexpected challenges – from Russia’s brutal invasion of Ukraine and its consequences including the energy crisis, migration, increasing inflation and interest rates. Addressing these multiple challenges has pushed EU resources to the point of exhaustion, hindering its capacity to address even the most urgent challenges.

– The EPP Group welcomes the deal reached on the revision of the EU’s long-term budget (Multiannual Financial Framework/MFF) which includes the new €50 billion ‚Ukraine Facility‘. We want Ukraine to benefit from this much-needed aid as soon as possible (with a potential first payment in March).

– The revision of the MFF means a total increase of €31.6 billion for the EU’s long-term budget, of which €21 billion is additional fresh money. The extra money will be dedicated to a vital range of priority areas such as Migration and Border Management (€2bn), the European Defence Fund (€1.5bn), and supporting the EU’s neighbouring regions and humanitarian efforts under the Neighbourhood and the world (€7.6bn) fund, which includes the Western Balkans (€2bn), for example. €2bn and the Solidarity and Emergency Aid Reserves increase the Flexibility Instrument by €1.5bn.

-Rising, unpredictable borrowing costs related to the Union’s COVID-19 recovery fund, NextGenerationEU, added enormous strain to the already overstretched MFF. That’s why the EPP Group called for a sustainable plan to cover increased interest costs on debt repayments (EU Recovery Instrument/EURI line). Our call forced a change of approach to the repayment plan, which safeguards the direct management programmes from at least €10 billion of cuts that would have been made between 2025-2027 without this new approach.