Multiannual Financial Framework: what lies ahead for the EU’s long-term budget?

Representing your company or sector in Brussels can sometimes feel frustrating. On occasion, we hear from organisations that are disheartened by the limited attention they receive from EU institutions. Questions like “Why does no one in the institutions seem to care about my industry?”,  “Why is my industry not getting more funding support?” come up more often than you think. Of course, the answer is usually more complicated than the question. However, one reason priorities do not always seem flexible is that the EU makes a long-term choice every seven years, exactly when the Multiannual Financial Framework (MFF) is agreed upon.

 

As a matter of fact, with over €2 trillion in play, the Multiannual Financial Framework is more than just the EU budget; it’s a reflection of what policies and sectors the EU decides to focus on for the seven years ahead.

 

And here’s the critical part: the clock is ticking. The European Commission has published its proposal for the new MFF in July (first package) and September (second package) 2025. That means the window to influence what gets prioritised is closing fast. If your organisation doesn’t act now to engage in the process, you risk being sidelined for the next seven years.

Did we get your attention? Then that’s a good time to invite you to read more below and find out what you could do to prevent your sector from being left out.

My name is Maria Pulina, and I’m a Senior Consultant at Publyon. This article would not have been possible without the support of our partner organisation FirstBlue and the valuable insights of EU funding experts Georgeta Galusca and Audrey Sanctorum.

What is the Multiannual Financial Framework?

The Multiannual Financial Framework is the EU’s seven-year spending plan. It sets out how much money the EU can invest – and on what – across policy priorities such as climate, cohesion, research, migration, and defence.

The MFF ensures financial stability and predictability for flagship programmes such as Horizon Europe or Erasmus+. The MFF is not just a financial tool, but a real political roadmap of EU priorities.

 

Who decides the MFF and how is it approved?

The process starts with the European Commission, which prepares a legislative proposal. The proposals for the new MFF have now been presented in mid-July and early-September 2025. What happens next?

  • First of all, the national governmentsand the European Parliament engage in often intense negotiations and may push for more ambitious targets.
  • The final approval requires unanimity among all EU heads of state and government.
  • Finally, the European Parliament provides the final approval.

The process typically takes 18–24 months. Early engagement is vital if you want to have any kind of influence in shaping the long-term EU budget.

 

Multiannual Financial Framework adoption timeline

Credit: FirstBlue

Why should your organisation care about the Multiannual Financial Framework?

Knowing the structure and priorities of the MFF helps organisations like yours:

  • Identify where the future EU funding will go;
  • Anticipate risks and act promptly if funding for your sectors decreases;
  • Position your organisation early in lobbying and policy influence.

 

What can your organisation already do?

Firstly, draft your whitepaper. Think about what your industry would need to flourish in the EU in the next seven years and craft a compelling story that works in Brussels. Need support? Our Digital Public Affairs services help you elaborate a narrative that matters, and is aligned with the EU’s priorities and impactful for incoming policymakers.

Secondly, elaborate a solid engagement strategy for the MFF negotiations. Once the proposal is out, timing is everything. If you did not already provide input before the proposal was out, chances are that opportunities for your organisation to influence the process will be limited to the negotiation phase. An occasion not to miss! We support clients with real-time policy monitoring, tailored influence roadmaps, and direct advice on Council and Parliament dynamics—so you’re not reacting, but leading.

What will change with the 2028-2034 Multiannual Financial Framework?

  • Bigger but leaner budget structure: The Commission has proposed a €2 trillion MFF for the period 2028-2034, the largest in EU history. While overall size increases compared to 2021-2027, the structure is streamlined: 4 headings instead of 7, and 16 programmes instead of 50, aiming for simplification and flexibility.
  • More EU calls and grants will be tied to key performance indicators (KPIs), making results-based financing the norm rather than advance disbursement.
  • A shift in priorities, with a stronger emphasis on competitiveness, innovation, and digitalisation, with major increases for Horizon Europe (+200%), Erasmus+ (+150%), and strategic sectors such as biotech (+600%), digital (+500%), energy (+500%), defence and space (+500%), and the Connecting Europe Facility (+200%). This shift also means cuts to areas such as Cohesion funds and the Common Agricultural Policy (CAP), with CAP direct payments reduced by around 30%.
  • New and reinforced programmes, such as the Single Market and Customs Programme (€6.2 billion), merging existing funding streams to cut red tape, modernise taxation, customs, and anti-fraud systems, and boost consumer protection.
  • Five fresh own revenue streams propose to diversify financing and reduce reliance on national contributions, including revenues from ETS, CBAM, e-waste, tobacco excise duty, and a new Corporate Resource for Europe (CORE) levied on large companies with EU turnover above €100 million.
  • Debt and crisis mechanisms, including:
    • Catalyst Europe: up to €150 billion in EU-backed loans for Member States to invest in EU priorities.
    • A permanent crisis mechanism, mobilising up to €395 billion in shared debt to respond to shocks (pandemics, energy crises, wars) without relying on Article 122 emergency procedures.

What is left to say?

Take action!

If you’re wondering how to turn the new EU budget into a competitive edge – or at least to understand what financial opportunities and threats lie ahead – let’s connect. Drop me a message via my LinkedIn profile or get in touch by e-mail at m.pulina@publyon.com.

If you want to apply for EU funding or want to know which EU funding programmes offer the best chances for your project, visit the FirstBlue website or get in touch by e-mail with Georgeta Galusca and Audrey Sanctorum.

Feel free to share your questions or feedback with us, we’ll be very willing to hear from you!

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