The road to the next multiannual financial framework

In a recent post we highlighted that the debate is starting about the next MFF of the EU and the theat it presents for local development in rural and urban areas. On 11 February 2025 the European Commission published a Communication “The road to the next multiannual financial framework” marking the first formal step in this debate.

The Communication concludes, as follows:

In light of the policy and budgetary challenges discussed in this Communication, for the
EU budget to achieve these objectives, the status quo is not an option48. The next long-term
budget will have to address the complexities, weaknesses and rigidities that are currently
present and maximise the impact of every euro it spends, focusing on EU priorities and
objectives where the EU action is mostly needed. A new approach for a modern EU budget
should present at its core:
• A plan for each country with key reforms and investments, and focusing on our joint
priorities, including promoting economic, social and territorial cohesion. A
strengthened cohesion and growth policy with regions at its centre must be designed
and implemented in partnership with national, regional and local authorities.
• A European Competitiveness Fund establishing an investment capacity that will support
strategic sectors and technologies critical to the EU competitiveness, including research
and innovation, and Important Projects of Common European Interest. The Fund’s
comprehensive architecture will allow it to accompany European projects along the
entire investment journey, from research, through scale-up, industrial deployment, to
manufacturing. It will also help to leverage and de-risk private investment.
• A revamped external action financing to make it more impactful and targeted for our
partners, and more aligned with our strategic interests. This should contribute to a new
foreign policy.
• Strong safeguards on the protection of the rule of law.
• Strengthened and modernised revenues, notably via new own resources, to ensure
sufficient and sustainable financing for our common priorities.

The full text of this Communication can be accessed HERE.

The next LDnet webinar on 19 February 2025 will offer an excellent opportunity to analyse the implications of the Communication for local development.