IATE Term of the Week: Multiannual Financial Framework

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Multiannual Financial Framework

On July 21 2020, EU leaders reached a historic agreement, concerning the establishment of a long-term budget. This agreement sets the importance mainly on the understanding between the European Council and the European Parliament, to share the same approach in order to ensure European recovery and resilience and timely kick off the new generation of programmes.

Each long-term budget plan usually covers a period of five to seven years. The formal process of establishing the long-term budget plan entails two basic steps.  First, a “Multiannual Financial Framework” regulation, which lays down how much the European Union can spend, is set. Secondly, the “own resources decision” which defines where the European Union’s revenue comes from is decided. Finally yet importantly, the long-term budget plan includes the various proposals made by the European Commission for sectoral programmes for the new programming period.

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This IATE Term of the Week is devoted to defining the Multiannual Financial Framework, which is the first step of the long-term budget plan of the European Union. The Multiannual Financial Framework, which is also called the “financial perspective”, is the seven years framework, which sets the long-term parameters for the budget of the European Union. Specifically, the Multiannual Financial Framework sets the maximum amount of spendings in the European Union, and fixes an overall annual ceiling on the payment and commitment appropriations.

The main fields on which the Multiannual Financial Framework for the years 2021-2027 focuses and aims to invest in are all contemporary and evolving issues, which are increasingly attracting the interest and concern of European Union. These fields, to name but a few, are  European safety and stability, namely cyber-attacks, terrorism, disinformation, natural disasters, climate change, human rights violations, and gender inequality.

 

References

BBC News, How the Money is spent, [ONLINE], Available at http://news.bbc.co.uk/2/shared/spl/hi/europe/04/money/html/introduction.stm Accessed 07 October 2020

European Commission, 2021-2027 long-term EU budget & Next Generation EU, [ONLINE], Available at https://ec.europa.eu/info/strategy/eu-budget/long-term-eu-budget/2021-2027_en Accessed 07 October 2020


European Council, Council of the European Union, Negotiating the EU long-term budget [ONLINE], Available at https://www.consilium.europa.eu/en/policies/the-eu-budget/negotiating-the-long-term-eu-budget/ Accessed 07 October 2020


Maria Papamargariti pictureWritten by Maria Papamargariti, Greek and English Philologist, writer in the field of children’s literature.