For a brief overview of the key points of the adopted text and its significance for the citizen, please see the corresponding summary note.

The final agreement

The final steps of the procedure, i.e. consent vote in the European Parliament and unanimous vote in the Council, were delayed by a month due to the dispute around the mechanism linking the EU budget with the rule of law. It was only on 10 December 2020 that the Member States leaders found a solution and unblocked the procedure.

On 14 December 2020, the European Parliament Committee on Budget (BUDG) adopted the draft recommendation on the draft Council regulation laying down the multiannual financial framework for 2021-2027 and the joint interinstitutional declarations annexed to it (30 votes in favour, 2 against and 4 abstentions). As part of the overall agreement, the members of the Committee on Constitutional Affairs (AFCO) adopted the interinstitutional agreement on budgetary matters (23 in favour, 3 against, 2 abstentions).

On 16 December 2020, the European Parliament gave its consent to the regulation on the 2021-2027 MFF. In the resolution on the Multiannual Financial Framework 2021-2027, the InterInstitutional Agreement, the EU Recovery Instrument and the Rule of Law Regulation, the Parliament emphasised that (inter alia):

• the financial package agreed has a historic importance, it will amount to €1.8 trillion and include the MFF 2021-2027 (€1074 billion moving progressively to €1085 billion) coupled with the Recovery Instrument (€750 billion);
• an effective Rule of Law Regulation and the introduction of new own resources were a pre-condition of the European Parliament to agree with the MFF package;
• it regrets that, due to the unanimity rule in the Council, the adoption of the entire package, including the new EU programmes for the period 2021-2027, cause unduly delay for the entire process;
• the overcoming of the hurdles posed by unanimity requirement in Council regarding the adoption of the MFF and own resources decision, among other instances, shall be addressed in the upcoming Conference on the Future of Europe.

On 17 December, after receiving the Parliament’s consent, the Council adopted unanimously the MFF regulation and recovery package.

Visit the European Parliament homepage on the EU's long term budget 2021-2027 , 'The EU's long term budget explained', and the EPRS blog on the MFF.

References:

• Legislative acts, Official Journal of the EU, L 433 I, Volume 63, 22 December 2020
• EP Legislative Observatory, Resolution on the Multiannual Financial Framework 2021-2027, the Interinstitutional Agreement, the EU Recovery Instrument and the Rule of Law Regulation, 2020/2923(RSP).
• European Parliament, Recommendation on the draft Council regulation lying down the multiannual financial framework for the years 2021-2027, 17 December 2020.
• European Council conclusions, 17-21 July 2020.
• Commission proposal, May 2020.
• EP Legislative Observatory, Resolution on the conclusions of the extraordinary European Council meeting of 17-21 July 2020, 2020/2732(RSP).
• EP Legislative Observatory, Resolution on the new multiannual financial framework, own resources and the recovery plan, 2020/2631(RSP).
• EP Legislative Observatory, Procedure files on Multiannual financial framework for the years 2021 to 2027, 2018/0166(APP).
• EP Legislative Observatory, Procedure files on Interinstitutional Agreement on budgetary discipline, cooperation in budgetary matters and on sound financial management, 2018/2070(ACI).
• EP Legislative Observatory, Procedure files on Interim report on MFF 20201-2027 - Parliament's position in view of an agreement, 2018/0166R(APP).
• European Parliament resolution of 14 March 2018 on the next MFF: Preparing the Parliament's position on the MFF post-2020 (2017/2052(INI)).
• European Parliament resolution of 30 May 2018 on the 2021-2027 multiannual financial framework and own resources (2018/2714(RSP)).
• European Parliament resolution of 14 November 2018 on the Multiannual Financial Framework 2021-2027 - Parliament's position with a view to an agreement (2018/0166R(APP)).
• European Parliament resolution of 10 October 2019 on the 2021-2027 multiannual financial framework and own resources: time to meet citizens' expectations (2018/2833 (RSP))
• European Parliament resolution of 13 May 2020, A safety net to protect the beneficiaries of EU programmes: setting up an MFF contingency plan (2020/2051(INL)
• Proposal for a Council Regulation laying down the multiannual financial framework for the years 2021-2027, COM(2018)322 final.
• Proposal for a Interinstitutional Agreement between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, COM(2018)323 final.
• Communication from the Commission, A Modern Budget for a Union that Protects, Empowers and Defends. The Multiannual Financial Framework for 2021-2027, COM(2018)321 final.
• Council of the EU, Revised Draft Negotiating Box (December 2019).
• Council of the EU, Timeline of the negotiations on the 2021-2027 MFF.
• European Committee of the Regions, Opinion, The Multiannual Financial Framework package for the years 2021-2027, COTER-VI/042, 9 October 2018.
• European Economic and Social Committee, Opinion, Recovery plan for Europe and the Multiannual Financial Framework 2021-2027, ECO/523, 16 July 2020.

Further readings:

• M. Sapala, M. Pari, N. Kresnichka-Nikolchova, EU financing for 2021-2027. The 2021-2027 Multiannual Financial Framework, the Next Generation EU recovery instrument and new own resources, Infographic, EPRS, European Parliament, December 2020.
• 2021-2027 MFF in figures - Animated infographics
• Alessandro D’Alfonso, M. Pari, M. Sapala, Negotiations on the next MFF and the EU recovery instrument, Briefing, EPRS, July 2020
• Alessandro D’Alfonso, N. Kresnichka-Nikolchova, Future financing of the Union: MFF, Own Resources and Next Generation EU, At a Glance, EPRS, July 2020
• Infographics, M. Sapala, N. Kresnichka-Nikolchova, Amended proposal for the 2021-2027 MFF and 2021-2024 recovery instrument ‘Next Generation EU’ in figures, EPRS, July 2020.
• EPRS blog on the MFF negotiations.
• EPRS Briefing, A. D'Alfonso, Multiannual financial framework for the years 2021 to 2027: The future of EU finances, EU Legislation in Progress, European Parliament, January 2021. 
• Secretariat of the Committee on Budgets, European Parliament, Comparative of the proposals: 18 February 2020( tables and analysis); 14 July 2020 (analysis), 23 July 2020 (analysis).
• EPRS In-depth Analysis, M. Parry. M. Sapala, 2021-2027 multiannual financial framework. Analysis of the Commission's proposal, European Parliament, July 2018.

Author: Magdalena Sapala, Members' Research Service, [email protected]

Visit the European Parliament homepage on the EU's long term budget 2021-2027 ,'The EU's long term budget explained' and the EPRS blog on the MFF.