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The Multiannual Financial Framework (MFF) is the EU’s long-term budget plan, setting the spending ceilings, budget investments and priorities for at least five years.
It ensures the EU’s investments are aligned with its political objectives, providing both stability and strategic direction for funding programmes across all Member States.

At the European Council meeting on 20–21 March 2025, EU Heads of State or Government held their first discussion on the post-2027 MFF, marking the formal political launch of negotiations for the 2028–2034 cycle. While the European Council does not have a formal legal role in adopting the MFF—this lies with the Council of the EU, based on a proposal from the Commission and approval from the European Parliament—its influence is undeniably central. Since the first binding MFF in 1988, the European Council has played a decisive role in shaping the outcome, with negotiations traditionally handled as Chefsache, or matters for heads of government, due to their politically sensitive nature. The political tone of the March summit confirms the dual nature of the MFF, as a political and financial instrument.

As stated in the official conclusions of the latest EU Council: “The European Council had a first exchange of views on the next Multiannual Financial Framework and on new own resources.”

We don’t yet have many concrete details, but this first exchange signals that the discussion on new own resources—the revenue side of the EU budget—is going to be significant. Currently, the EU’s own resources consist mainly of customs duties, a share of VAT collected by Member States, and national contributions based on Gross National Income (GNI). In recent years, new sources have been introduced or proposed, including the plastic levy, the Emissions Trading System (ETS)–based revenue, and the forthcoming Carbon Border Adjustment Mechanism (CBAM). These new streams are meant to both strengthen the EU’s financial autonomy and help repay the debt from the NextGenerationEU recovery fund.

This is just the beginning of what will be a complex and highly political debate.

The MFF is driven by political priorities, and the way funding is allocated reflects the EU’s collective ambitions. At this early stage, defense and energy security appear to be gaining ground as top concerns, influenced by the broader geopolitical context and recent global shifts. But whether these will be formalized as key funding pillars is still to be determined. As the negotiations unfold, one thing is certain: the future MFF will not only shape the EU’s priorities but also test its unity. The coming months will show whether Europe can match its political ambitions with the financial tools required to realize them.

Written by: Cristina Ceccarelli