The European Commission has presented its proposal for an ambitious and dynamic Multiannual Financial Framework (MFF), amounting to almost EUR 2 trillion (or 1.26% of the EU’s gross national income on average between 2028 and 2034), claiming that this framework will equip Europe with a long-term investment budget matching its ambitions to be an independent, prosperous, secure, and thriving society and economy over the coming decade.
This is in response to an increasing number of challenges facing Europe in numerous areas such as security, defence, competitiveness, migration, energy and climate resilience. These are to not be temporary measures but reflect systemic geopolitical and economic shifts that require a strong and forward-looking response by the EU.
A fundamental redesign of the EU budget has been proposed by the European Commission, which is claimed to be more streamlined, flexible and impactful. It will significantly enhance the EU’s capacity to deliver on core policies while addressing new and emerging priorities. This budget will continue to support people, business, Member States, regions, partners, and the EU’s collective future.
The new long-term budget aims to bring together EU funds implemented by Member States and Regions under one coherent strategy, with cohesion and agricultural policy at its core. This strategy will be implemented through National and Regional Partnership Plans, simpler and more tailored, to maximize the impact of every euro. Having one single plan per Member State integrating all relevant support measures – whether for workers, farmers or fishermen, cities or rural areas, regions or the national level – ensures a much stronger impact, and a much more efficient use of European funding. It is the most effective way to support the Union’s territories and communities. It brings genuine simplification, both for public authorities and for direct beneficiaries.
Key features of the Multiannual Financial Framework (MFF) related to agriculture and rural areas
Income support to farmers and fishermen will be ringfenced, including environmental measures, on-farm investments, support to young farmers and risk management tools. Funding rules for agriculture and rural communities will be simpler, including on payments, controls and audits.
An effort to drive prosperity via competitiveness, research and innovation has been promised through a new European Competitiveness Fund, worth EUR 409 billion, to invest in strategic technologies, to benefit the entire Single Market, as recommended in the Letta and Draghi Reports. The Fund, operating under one rulebook, and offering a single gateway to funding applicants, will simplify and accelerate EU funding and catalyse private and public investment. Agriculture and the bio economy will be a key part of this research. The Fund will maximise the impact of every euro spent by drawing in private money.
An agriculture reserve will be established to support farmers and stabilise markets if needed.
More details to follow.
Learn more about the current CAP Strategic Plan (CSP) 2023-2027 here.
Image Source: European Commission