The next MFF deliver significant simplification and focus on competitiveness

The discussion on the next MFF is well under way in view of the much-anticipated proposal by the European Commission in July.

In February, the Communication on the "The road to the next multiannual financial framework" was launched by the European Commission to stimulate debate on the structure and orientation of the next budget of the EU. Against this backdrop, the European Economic and Social Committee has adopted its opinion which will feed into the European Commission’s deliberations.

The discussions on the next MFF come at a time when the EU’s challenges and thus the need for a more coordinated approach are mounting. In addition to the key challenge of delivering on decarbonisation whilst maintaining competitiveness and preserving social cohesion, the EU is faced for the first time in decades with a highly uncertain geopolitical and security landscape.  At the same, the repayment of the NGEU will put additional pressure on the budget as of 2028.  Whilst trade off will be inevitable, the next MFF must give the EU the necessary means to cope with these challenges and in this respect, the EESC believes that the level of the next MFF - as a percentage of GNI – should not decrease in real terms and in fact must substantially increase.

Increased ambition must nevertheless be accompanied by a new approach to deliver simplification and a focus on new priorities. As highlighted in the Draghi report, the current MFF contains too many programmes with overlapping objectives, which cause significant bureaucracy for public administrations, civil society and companies, making it hard to scale up and achieve well-targeted priorities. As such, the EESC supports the strive for a more streamlined and simplified MFF.

At the same time, more incentives need to be given for performance and to move away from the predominant model of linking financing to expenditure. While this course applies horizontally to all programmes, it is particularly relevant for cohesion to ensure that actions financed in the members states have a higher developmental footprint and promote the competitiveness of European regions.

Last but not least, the next MFF must put more focus on programmes that are directly aimed at boosting competitiveness. Amongst others, this includes:

• A stronger budget for the Innovation Fund to support the decarbonization efforts of energy intensive industries decarbonise successfully
• An increase in resources for the transport and energy interconnections to complete the TEN-T and TEN-E networks
• Co-financing for Important Projects of Common European Interest to promote a more equal participation of companies across the EU
• An enhanced Horizon Europe programme that will allow the EU to scale up its research and innovation ambitions
• A Competitiveness Fund that is not simply a rebranding of existing programmes but which has new resources and can have an added value to the EU economy.

Konstantinos Diamantouros, EESC Employers' Group Member and Rapporteur of Opinion ECO/662 The Multiannual Financial Framework post-2027 – policy proposals from organised civil society.