The European Commission presented its proposal for an ambitious and dynamic long-term EU budget, also referred to as the Multiannual Financial Framework (or ‘MFF’) on 16 July 2025. This overall framework provides a long-term investment budget between 2028 and 2034 with flexibility, simpler, streamlined and harmonised EU financial programmes, tailored to needs giving a particular boost to competitiveness.

Overall, the Commission proposes to reduce the number of programmes in the next Multiannual Financial Framework from roughly 52 to 16, with harmonised rules. Access to EU funds for beneficiaries will be facilitated through the creation of a single portal, acting as a unique access point for all funding opportunities under different EU instruments.

The decision on the future long-term EU budget and revenue system will be discussed by Member States in the Council. Adoption of the MFF Regulation requires unanimity, following the consent of the European Parliament.

The Mutliannual Financial Framework

Overall there, are four main categories of expenditures (‘headings’) in the Commission proposal for the 2028-2034 EU budget corresponding to the major areas of activity financed by the EU budget, more specifically:

• Heading 1: Europe’s economic, social and territorial cohesion, agriculture, rural and maritime prosperity and security
  EUR 1 trillion.
  It encompasses in particular the National and Regional Partnership Plans (NRPP) implemented based on related sectoral policies (Common Agricultural Policy, Common Fisheries Policy, European Social Fund, Cohesion policy and Home affairs); and includes also Frontex, Europol and other decentralised agencies. An “EU Facility” will complement the NRPPs with funding at EU-level to deliver on areas of a high EU added-value, such as cooperation projects, finance social innovation, experimentation and capacity-building, and provide budgetary guarantees to promote microfinance, social enterprise finance, and social infrastructure, including health and educational infrastructure and social and student housing as well as cater for uncertainty.
• Heading 2: Competitiveness, prosperity and security
  EUR 589.6 billion.
  It includes the European Competitiveness Fund and Horizon Europe as well as key programmes to support the Union cross border connectivity (Connecting Europe Facility), preparedness and response to crises, including health (Union Civil Protection Mechanism+), as well as Europe’s cross-border education flagship programme Erasmus+, and the new ‘AgoraEU’ that will support culture, media and civil society organisations.
• Heading 3: Global Europe
  EUR 215.2 billion.
  This includes also the Common Foreign and Security Policy and Overseas Countries and Territories (including Greenland). The Global Europe Instrument will also provide for tailor-made partnerships based on mutual interests.
• Heading 4: Administration
  a stable share of 6% of the MFF.
  It covers expenditures for the European Public Administration.
• Beyond these four headings, a special reserve will be available to support Ukraine.
• A significant share of the next MFF will not be pre-programmed or pre-planned, so that emerging needs can be addressed swiftly and effectively.

Research and Innovation related funds

A new European Competitiveness Fund, worth EUR 409 billion, will invest in strategic technologies, to benefit the entire Single Market. The Fund, operating under one rulebook, and offering a single gateway to funding applicants, will simplify and accelerate EU funding and catalyse private and public investment. The Fund will maximise the impact of every euro spent by drawing in private money. The ECF will also identify highly specialised and advanced skills tailored to the direct demands of the industry (and will work together with Erasmus+ to finance activities to close the skill gaps identified).

It will focus its support on four areas:

• clean transition and decarbonization;
• digital transition;
• health, biotech, agriculture and bioeconomy;
• defence, and space.

The European Competitiveness Fund, tightly connected to Horizon Europe, will offer support for the entire investment journey of a project, from conception phase, research to scaling up and manufacturing and reduce both the cost for potential beneficiaries and the time for disbursement.  This will create a seamless investment journey in a more focused and simpler set-up.

Horizon Europe worth EUR 175 billion will continue to finance world-class innovation.

Key features of the future Horizon Europe (2028-2034) are – see the related factsheet:

• Simpler, faster access:
  • Less red tape with shorter work programmes
  • Open-topic calls by default
  • Unified funding rates
  • Speedier grants, reducing time between application and funding
  • Simplified costs with lump-sum funding options for easier budgeting
• Strengthened European Research Council
  • Funds frontier research by excellent researchers
  • Promotes Choose Europe
• Expanded European Innovation Council to boost innovation
  • Supports deep tech startups in sectors like quantum, biotech, clean tech
  • Offers agile funding for innovative projects
  • Supports high-tech dual use and defence startups and scaleups
• Collaborative research
  • Addresses societal challenges like disinformation and climate change and boosts EU competitiveness, aligned with the objectives of the European Competitiveness Fund
• Streamlined partnerships with Member States and the private sector
  • Simplifies their organisation and operations
  • Envisions more focused partnerships aligned with strategic industrial sectors for our competitiveness, security and resillience
  • Leverages private investments
  • Pulls R&I investments between the EU and Member States
• More support for research and technology infrastructures
  • Funds cutting-edge research and technology infrastructures
  • Supports facilities, resources and services
• Spreading excellence
  • New tailored approach, focusing on actions to increase R&I performance, enhance research capacity and ecosystems and combat brain drain.
• Moonshots
  • Ambitious technology driven projects that boost the EU’s strategic autonomy through research, development and deployment. e.g. ▶ the future circular collider ▶ clean aviation ▶quantum computing ▶ next-generation AI ▶ data sovereignty ▶ automated transport and mobility ▶ regenerative therapies ▶ fusion energy ▶space economy ▶ zero water pollution ▶ ocean observation
• Revision of the pillar-structure in relation to the current programme.

Other relevant funds for skills development

• Erasmus+, one of the flagship programmes in the EU budget, will be reinforced to EUR 40.8 billion. This enhanced funding will contribute to a resilient, competitive, and cohesive Europe by promoting high quality lifelong learning, enhancing skills and competences for life and for jobs for all, while fostering Union values, democratic and societal participation, solidarity, social inclusion and equal opportunities, in the EU and beyond. The reinforced Erasmus+ will be a single-entry point to EU opportunities for young people. It will also be more supportive for EU enlargement and cooperation across the globe.
• AgoraEU, a new programme, will build on the success of the CERV and Creative Europe in supporting a vibrant civil society, cultural exchange and media industry.

Enlargement related funds

The new Multiannual Financial Framework foresees reinforced external action to match a more strategic, values-driven and impactful approach to enlargement, partnerships and diplomacy, in alignment with the EU’s strategic interests. It clearly states: Enlargement is an investment in Europe’s long-term security, peace, stability and prosperity.

To simplify external action financing, a Global Europe, worth EUR 200 billion for 2028-2034 will maximise impact on the ground and improve visibility of EU external action in partner countries. It will allow the EU budget to step up support to candidate countries and prepare for their accession providing a coherent package of support to candidate countries, to accelerate their alignment with EU values, laws, rules, standards, policies and practices – the acquis – through the adoption and implementation of performance-based plans. Furthermore, special support for Ukraine will also be available.

Global Europe will structure funding around five geographic pillars – Europe, Middle East, North Africa and the Gulf, Sub-Saharan Africa, Asia and the Pacific, as well as Americas and the Caribbean – coupled with a complementary global pillar for global actions.

Comprehensive mutually beneficial partnership packages and multiannual cooperation programmes will cater for predictability but also ensure flexibility to respond to crisis.

Sources

For more information, please consult the sources of this announcement: Press Release: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1847; dedicated Questions & Answers; dedicated Factsheets; in particular the Factsheet on Horizon Europe; website on the Next MFF