Mid-term review/revision of the MFF: Key issues at the outset of the debate

Briefing 27-01-2016

The EU's Multiannual Financial Framework (MFF) lays down maximum annual levels of EU spending in different areas. The current MFF covers seven years, from 2014 to 2020. According to Article 2 of the MFF Regulation the Commission is obliged to prepare a mid-term review of the functioning of the MFF and, as appropriate, a legislative proposal for a revision of the MFF Regulation no later than the end of 2016. This dual requirement is referred to as the mid-term 'review/revision'. Although the idea of reviewing the framework during its lifespan is not new, the current MFF is the first to include specific provisions providing for a mid-term review that may lead to revision of the Regulation. For a number of reasons, implementation of the 2014-2020 MFF has already proven to be challenging, even in its first two years. In order to accommodate unexpected needs within the authorised ceilings, the budgetary authority has already had to resort to almost all the special levers and flexibility instruments provided for in the MFF Regulation. This raises questions about the functioning of the MFF through to 2020, and, in particular, about the adequacy of the agreed spending ceilings. The European Parliament has consistently supported the idea of a genuine, post electoral mid-term MFF review combined with appropriate revision of the MFF Regulation. Parliament's ambition is to set the agenda and to be at the forefront of the debate, which is why in December 2015 the Committee on Budgets (BUDG) launched a discussion with a view to adopting a strategic initiative report ahead of the Commission's adoption of the review/revision.