A revamped long-term budget for the Union in a changing world

What changes

• The proposal calls for an increase in resources for the next Multiannual Financial Framework (MFF) compared to the 2021-2027 period.
• The proposal suggests that the envisioned umbrella Competitiveness Fund should be a new instrument, rather than merging existing programs, utilizing a toolbox based on lessons from InvestEU and the Innovation Fund.
• The next MFF should include enhanced built-in crisis response capacity with sufficient margins and flexibility reserves, including two special instruments for natural disasters and general crisis response.

Expected impact

• The 'one national plan per Member State' approach, modeled on the Recovery and Resilience Facility, is deemed unsuitable for shared management spending post-2027.
• The Union budget must be carefully coordinated with national spending to ensure complementarity and de-risk, mobilize, and leverage private investment effectively, particularly for SMEs.
• Compliance with Union values and fundamental rights is an essential prerequisite for accessing EU funds, with a call for a stronger link between the rule of law and the Union budget post-2027.

Limitations

• The document is a European Parliament resolution and does not contain specific budgetary figures or detailed legislative text for the next MFF.
• The analysis is limited to the information presented in the provided text, which is a report on a revamped long-term budget, not the final adopted budget itself.
• Specific details on the implementation mechanisms or the exact allocation of funds for proposed initiatives are not provided.