Designing Europe's next EU budget. How can the 2028-2034 MFF support competitiveness and resilience? | North America | Art Argentum

SUMMARY

Discussions on the Multiannual Financial Framework (MFF) for 2028-2034 are crucial for shaping the EU's funding strategies amid geopolitical and economic challenges. There is a consensus on the need to enhance Europe's competitiveness and resilience, but opinions differ on the structure of EU spending to achieve these goals. The discussions on the Multiannual Financial Framework (MFF) for 2028-2034 focus on enhancing EU competitiveness and resilience through strategic budget allocations. Key debates center around balancing traditional investments with new priorities in security and defense amid a challenging geopolitical landscape.

Discussions on the Multiannual Financial Framework (MFF) for 2028-2034 are focused on enhancing EU competitiveness and resilience through strategic budget allocations. Key debates center around balancing traditional investments with new priorities in security and defense amid a challenging geopolitical landscape. The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034 to align the budget with shared priorities and address emerging challenges. The discussions emphasize the need for fiscal responsibility and effective allocation of resources to enhance EU competitiveness and resilience.

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Designing Europe’s next EU budget. How can the 2028-2034 MFF support competitiveness and resilience?

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Designing Europe’s next EU budget. How can the 2028-2034 MFF support competitiveness and resilience?

center_for_strategic__international_studies • 2026-05-12 17:20:42 UTC

Discussions on the Multiannual Financial Framework (MFF) for 2028-2034 are crucial for shaping the EU's funding strategies amid geopolitical and economic challenges. There is a consensus on the need to enhance Europe's c…

FULL

00:00–05:00

Discussions on the Multiannual Financial Framework (MFF) for 2028-2034 are crucial for shaping the EU's funding strategies amid geopolitical and economic challenges. There is a consensus on the need to enhance Europe's competitiveness and resilience, but opinions differ on the structure of EU spending to achieve these goals.

Discussions on the Multiannual Financial Framework (MFF) for 2028-2034 are pivotal for shaping the EUs funding and economic strategies in light of geopolitical instability and economic challenges
While there is agreement on the necessity to boost Europes competitiveness and resilience, opinions vary on the optimal structure of EU spending to achieve these objectives
The European Commission seeks to develop a more ambitious and adaptable budget that can respond to unforeseen challenges, while still supporting established policies like cohesion and agricultural initiatives
Key stakeholders, including members of the European Parliament and European Commission representatives, will examine diverse perspectives on the MFFs design and its economic implications
The event highlights the need for a streamlined budget framework that enables flexibility in addressing emerging needs, underscoring the complexities of planning a budget nearly a decade ahead

METRICS

OTHER

until 2034years

details

CONTEXT: duration of the MFF

WHY: Long-term planning is essential for stability and growth

EVIDENCE: what we're doing here will decide what we are able to do and to finance in the EU until 2034

FULL

05:00–10:00

The discussions on the Multiannual Financial Framework (MFF) for 2028-2034 focus on enhancing EU competitiveness and resilience through strategic budget allocations. Key debates center around balancing traditional investments with new priorities in security and defense amid a challenging geopolitical landscape.

The next Multiannual Financial Framework (MFF) aims to enhance EU competitiveness and resilience through a comprehensive approach, particularly by establishing a European competitiveness fund focused on innovation and project scaling
The budget proposal prioritizes flexibility and simplicity, introducing a single access point for funding to streamline processes for project promoters and boost competitiveness
There is debate over the budgets ambition level, with the European Parliament calling for a 10% increase to address emerging geopolitical challenges while maintaining traditional priorities like cohesion and agriculture
The current geopolitical climate, marked by conflicts and security threats, requires a strategic MFF approach that balances traditional investments with new priorities in security and defense

METRICS

OTHER

10%%

details

CONTEXT: requested increase by the European Parliament

WHY: This increase aims to address emerging geopolitical challenges while maintaining traditional priorities

EVIDENCE: the parliament is asking for increase of 10 percent

FULL

10:00–15:00

Discussions on the Multiannual Financial Framework (MFF) for 2028-2034 are focused on enhancing EU competitiveness and resilience through strategic budget allocations. Key debates center around balancing traditional investments with new priorities in security and defense amid a challenging geopolitical landscape.

The new limitation on the NGU depth is expected to reduce the European budget by around 25 billion euros annually, which may lead to decreased funding for successful programs
There is a push for the European Parliament to shift from general critiques of governance and budget size to identifying concrete solutions for improving budget regulations
The European Parliament is negotiating with a clear stance on the necessity of sufficient funding to achieve various goals, including agricultural policy and rural development, amid challenges in securing a two trillion euro budget
Various funding options are under consideration, such as increasing contributions from Member States, delaying recovery plan payments, or acquiring new loans to address emerging priorities
The Cyprus presidency highlights the need for a strong and adaptable budget that aligns with shared priorities, addressing both traditional policies and new challenges

METRICS

LOSS

around 25 billion eurosEUR

details

CONTEXT: expected reduction in the European budget due to NGU depth limitation

WHY: This significant loss could lead to decreased funding for successful programs

EVIDENCE: the European budget with around 25 billion euros on an annual level

FULL

15:00–20:00

The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034 to align the budget with shared priorities and address emerging challenges. The discussions emphasize the need for fiscal responsibility and effective allocation of resources to enhance EU competitiveness and resilience.

The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034, aiming to create a budget that aligns with shared priorities and addresses emerging challenges
EPICENTER advocates for a spending test to assess the justification of EU expenditures and determine whether funding should come from the EU or member states
The proposal includes a cap on EU spending at 1% of the aggregate Gross National Income (GNI), which is about 12.5% lower than the European Commissions initial suggestion, highlighting the need for fiscal responsibility
Concerns have been raised regarding new own resources, such as e-waste taxes, which should be accompanied by the EU taking on responsibilities previously held by member states, especially in environmental initiatives
The introduction of a carbon border adjustment mechanism (CBAM) has been criticized for potentially harming EU competitiveness by driving businesses away

METRICS

CAPEX

1% of the aggregate Gross National Income (GNI)%

details

CONTEXT: proposed cap on EU spending

WHY: This cap aims to ensure fiscal responsibility in EU budget allocations

EVIDENCE: let's cap the expenses at 1% of GNI

FULL

20:00–25:00

The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034 to enhance EU competitiveness and resilience through strategic budget allocations. Key discussions focus on balancing traditional investments with new priorities in security and defense amid geopolitical challenges.

The current proposal for the EUs Multiannual Financial Framework (MFF) includes contentious elements that many believe could negatively impact competitiveness
Concerns have been raised about the EUs increasing reliance on debt, which may divert significant revenue to debt servicing instead of funding essential projects
A suggested tax on online gambling and betting could generate up to 24 billion euros for the MFF, potentially addressing specific social and economic needs
The debate highlights the necessity for common legislation on online gambling to combat illegal activities and ensure fair taxation across member states
There is a call for a more strategic approach to EU spending, emphasizing specific objectives and transparent allocation of revenues to tackle pressing social issues

METRICS

REVENUE

24 billion eurosEUR

details

CONTEXT: potential revenue from taxing online gambling

WHY: This revenue could address specific social and economic needs

EVIDENCE: we could raise up to at least 24 billion euros for the entire MFF

FULL

25:00–30:00

The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034 to enhance EU competitiveness and resilience through strategic budget allocations. Key discussions focus on balancing traditional investments with new priorities in security and defense amid geopolitical challenges.

There is a consensus on the need for a more effective Europe to enhance competitiveness, highlighting the importance of increasing the efficiency of EU spending
Industries benefiting from the common market are urged to contribute more responsibly to its development, sharing the financial burden
The EU faces a challenge in raising revenue amid fiscal constraints in many member states, complicating the funding of ambitious projects
Proposals for new revenue sources include taxing large companies with turnovers exceeding 100 million euros to ensure their contribution to the EU budget
The discussion around own resources is critical, with suggestions to utilize revenues from existing EU policies, such as the Emissions Trading System, to support the budget
There is an acknowledgment that expenditure discussions are closely tied to revenue generation, necessitating a balanced approach to achieve the EUs political goals

METRICS

REVENUE

100 million eurosEUR

details

CONTEXT: turnover threshold for large companies contributing to the EU budget

WHY: This threshold determines which companies will be taxed to support EU funding

EVIDENCE: companies with a turnover of 100 million and more

FULL

30:00–35:00

The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034 to enhance EU competitiveness and resilience through strategic budget allocations. Key discussions focus on balancing traditional investments with new priorities in security and defense amid geopolitical challenges.

The EU budget discussions for 2028-2034 highlight the need for a balanced approach that addresses new priorities while honoring existing commitments, particularly in technological competitiveness and cohesion
There is a strong push for increased investment in competitiveness, with proposals suggesting a doubling of funding for key priorities, indicating a shift in focus within the budget framework
Ensuring the budget supports both new initiatives and traditional sectors, such as agriculture, is crucial due to their political sensitivity and importance to member states
Concerns about the sustainability of the EUs pay-as-you-go pension system have emerged, with recommendations to proactively address potential risks, drawing parallels to challenges faced by member states like France
Integrating private capital through mechanisms like the European Capital Markets Union is considered essential for maximizing investments and enhancing the overall effectiveness of the EU budget

FULL

35:00–40:00

The European Parliament is engaged in discussions regarding the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience. Key issues include balancing new investments with spending efficiency and fiscal discipline amid geopolitical challenges.

The importance of reforming the EU pension system to avoid unsustainable pay-as-you-go models, particularly in light of demographic challenges in Europe
Reforming member states pension systems is essential to prevent future financial crises similar to those experienced by some countries
A balanced approach to new investments, spending efficiency, and fiscal discipline is crucial, with proposals advocating for a performance-based budget to establish clear criteria for EU expenditure
Concerns exist regarding the conditioning of access to EU funds on reforms, emphasizing the need for genuine partnerships and participatory mechanisms in the reform process
EU funds significantly impact social benefits, as seen in improved living conditions in rural areas, although some regions still struggle with economic disparities

FULL

40:00–45:00

The European Parliament is negotiating the Multiannual Financial Framework (MFF) for 2028-2034 to enhance EU competitiveness and resilience. Key discussions focus on balancing traditional investments with new priorities in security and defense amid geopolitical challenges.

A balanced approach to EU spending is essential, emphasizing new investments, efficiency, and fiscal discipline to prevent worsening public finance challenges
Cohesion funding is increasingly tied to competitiveness, advocating for performance-based budgeting that requires regions to define their funding needs to meet specific goals
Social benefits from EU funds, such as improved sanitation and education access in rural areas, underscore the necessity of integrating social criteria into budget evaluations
The performance-based budgeting approach seeks to improve accountability, but past experiences highlight the need for clearer definitions of milestones and targets for consistent implementation across member states
Engaging stakeholders in the planning process is vital, enabling regions and member states to customize their proposals to local needs while aligning with overarching EU objectives

FULL

45:00–50:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

Involving regions and local authorities in national plan preparation is crucial for effective governance, ensuring their priorities are reflected
There are concerns that the current proposal may overlook regional input, necessitating safeguards to maintain multilevel governance principles
Recommendations suggest eliminating ineffective cohesion funds while preserving successful programs, informed by evaluations of past EU spending
Improvements in living standards in countries like Romania highlight the importance of efficiently utilizing cohesion funds rather than relying solely on direct financial aid
Key strategies to boost competitiveness and innovation include completing the single market and establishing a single capital market, reducing dependence on EU funding

METRICS

OTHER

60%%

details

CONTEXT: public investment in Romania

WHY: This highlights the reliance on EU funds for essential infrastructure

EVIDENCE: 60% of all public investment have been done entirely with you money.

FULL

50:00–55:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

Cohesion funds have played a vital role in enhancing modernization and competitiveness in Central European nations, with each euro invested yielding significant economic returns
The need for a balanced geographic distribution of EU funds is emphasized to prevent competitiveness deserts and ensure equitable access to technologies like AI for all small and medium-sized enterprises (SMEs) across Europe
A constructive approach is advocated for the next EU budget, acknowledging past policy successes while also pushing for innovative funding strategies
Defense funding remains a divisive topic among member states, with some, such as Romania, advocating for increased support due to geopolitical threats, while others may not perceive the same level of urgency
Integrating local priorities into EU funding proposals is crucial, suggesting that regions should have a say in how funds are allocated to effectively address their specific challenges

METRICS

OTHER

9 out of 10 public investment involve at some point you money.%

details

CONTEXT: public investment involvement

WHY: This highlights the significant role of public investment in driving economic success

EVIDENCE: 9 out of 10 public investment involve at some point you money.

FULL

55:00–60:00

The European Parliament is engaged in discussions to shape the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key issues include balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

Member states are encouraged to fulfill their NATO commitments to strengthen collective defense capabilities amid the ongoing crisis involving Ukraine and Russia
The current EU budget, which allocates only 1% of GNI, is deemed inadequate for meeting the diverse defense needs of 27 member states, underscoring the need for a more cohesive defense spending strategy
There is a strong call to reduce overlap among EU programs and enhance the targeting of funds, as conflicting eligibility criteria hinder access for member states
Negotiations among member states present significant challenges in achieving consensus on a modernized budget that effectively integrates with the single market
The creation of national and regional partnership plans aims to streamline funding processes and reduce redundancy in financing similar initiatives, such as rural kindergartens

FULL

60:00–65:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

The EU budget can facilitate cross-border investments through initiatives like the Connecting Europe Facility, focusing on key sectors such as battery development and high-performance computing
Concerns arise over the coherence of incentivizing national reforms through the EU budget, particularly regarding the potential reversal of reforms, as illustrated by the pension reforms in France linked to the Recovery and Resilience Facility funding
A balanced approach is necessary to ensure that EU reform recommendations respect national competencies, especially in sensitive areas like social protection, while promoting competitiveness across member states
Collaboration among member states is crucial for effectively leveraging innovation and resources, with suggestions for a European startup initiative to unify efforts and stimulate economic growth throughout the EU

FULL

65:00–70:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

The next Multiannual Financial Framework (MFF) should be flexible enough to respond to unexpected challenges, including geopolitical events and economic changes, allowing member states to adjust their plans as needed
A more integrated European strategy for energy independence is necessary, utilizing existing tools like the Connecting Europe Facility and the Competitiveness Fund to bolster energy resilience and facilitate cross-border investments
Aligning EU budget proposals with market realities is crucial, as private sector investments are essential for advancing greener energy solutions
Financial instruments are vital for developing cross-border debt products and could stimulate innovative funding mechanisms in the upcoming MFF, emphasizing the need for significant private sector investment

FULL

70:00–75:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

The importance of mobilizing private investments alongside national budgets to drive economic growth, particularly through the integration of various financial instruments
Concerns exist regarding the effectiveness of subsidizing industrial policies, especially in sectors like artificial intelligence, where Europe faces challenges in retaining talent and investment due to regulatory hurdles
Panelists advocate for creating a favorable regulatory environment to incentivize private sector investment and innovation, rather than relying heavily on public funding
There is a call for an expanded common EU budget to stimulate economic growth, emphasizing the need to identify and support projects that deliver added value across member states
The comparison with the United States underscores the significant role of public funding in supporting high-tech industries, suggesting that Europe must enhance its state aid mechanisms to remain competitive

METRICS

OTHER

98%%

details

CONTEXT: percentage of companies in Europe that are SMEs

WHY: SMEs are crucial for economic stability and growth in Europe

EVIDENCE: 98% of our companies are SMEs

FULL

75:00–80:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

A fair and transparent approach to EU budget contributions is essential, as increased funding necessitates collective responsibility from all member states
There is a need for cohesive strategic planning to align EU funding with recent legislative initiatives like the Chips Act and the Critical Raw Materials Act
Current agricultural subsidies are viewed as ineffective, prompting suggestions to gradually phase out the Common Agricultural Policy to enhance market competitiveness
The rapid advancement of technology, especially in digital and AI sectors, complicates predictions for future funding needs, highlighting the necessity for flexible budgetary frameworks
Balancing national interests with EU-wide objectives is challenging, as influential interest groups can hinder efforts to reform funding allocations and reduce reliance on subsidies

FULL

80:00–85:00

The European Parliament is engaged in discussions to shape the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience. Key challenges include balancing increased funding demands with fiscal constraints and ensuring effective governance.

There is a conflict between interest groups pushing for increased EU funding and those advocating for a more cautious spending approach, highlighting the importance of efficiency and accountability
Negotiations on the EU budget have progressed, but fiscal constraints and differing priorities among member states continue to pose challenges
The European Parliament aims to streamline governance to ensure that budgetary rules serve the needs of end users rather than just the Commission
While flexibility in budget management is crucial, it must be paired with accountability to achieve effective outcomes for European citizens
The objective is to establish a comprehensive negotiating framework by June 2026 that addresses member states concerns while upholding ambitious EU funding goals

FULL

85:00–90:00

The European Parliament is preparing the Multiannual Financial Framework (MFF) for 2028-2034, focusing on enhancing EU competitiveness and resilience amid geopolitical challenges. Key discussions involve balancing traditional investments with new priorities in security and defense while ensuring effective governance and spending efficiency.

The report advocates for a critical approach to EU spending, aiming to improve budget effectiveness in supporting the European project
Speakers emphasize the need for the EU budget to achieve measurable economic impacts while ensuring accountability and flexibility
Ongoing negotiations face challenges related to fiscal constraints and the necessity for simplification in budget governance
There is a strong focus on the role of cross-border cooperation and targeted investments in enhancing Europes competitiveness and resilience
Participants highlight the importance of addressing structural public finance issues while balancing new investments with spending efficiency

CRITICAL ANALYSIS

The assumptions underlying the proposed MFF hinge on the belief that increased spending will directly translate to enhanced competitiveness. However, this overlooks potential confounders such as the efficiency of fund allocation and the varying economic conditions across member states. Inference: Without a clear framework for measuring the impact of spending, the risk of misallocation remains high, potentially exacerbating existing economic disparities.

METRICS

other

until 2034 years

duration of the MFF

Long-term planning is essential for stability and growth

what we're doing here will decide what we are able to do and to finance in the EU until 2034

other

10% %

requested increase by the European Parliament

This increase aims to address emerging geopolitical challenges while maintaining traditional priorities

the parliament is asking for increase of 10 percent

loss

around 25 billion euros EUR

expected reduction in the European budget due to NGU depth limitation

This significant loss could lead to decreased funding for successful programs

the European budget with around 25 billion euros on an annual level

capex

1% of the aggregate Gross National Income (GNI) %

proposed cap on EU spending

This cap aims to ensure fiscal responsibility in EU budget allocations

let's cap the expenses at 1% of GNI

revenue

24 billion euros EUR

potential revenue from taxing online gambling

This revenue could address specific social and economic needs

we could raise up to at least 24 billion euros for the entire MFF

revenue

100 million euros EUR

turnover threshold for large companies contributing to the EU budget

This threshold determines which companies will be taxed to support EU funding

companies with a turnover of 100 million and more

other

60% %

public investment in Romania

This highlights the reliance on EU funds for essential infrastructure

60% of all public investment have been done entirely with you money.

other

9 out of 10 public investment involve at some point you money. %

public investment involvement

This highlights the significant role of public investment in driving economic success

9 out of 10 public investment involve at some point you money.

THEMES

#eu_security#eu_budget#competitiveness#mff2028#cross_border_investment#defense_spending#economic_growth#europe_budget#fiscal_discipline#fiscal_responsibility#geopolitical_challenges#public_funding#spending_testDesigning Europe's next EU budget. How can the 2028-2034 MFF support competitive…North America conflict analysis

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