EU adopted Multiannual Financial Framework for 2014

Negotiations on the new financial framework package began in June 2011. Agreement on the MFF's overall level and its key contents was reached at the February European Council this year. In June, the Council, Parliament and the Commission reached political agreement on the package and it was passed at the European Parliament in mid-November.

"A long process has finally been brought to a conclusion. The outcome is good for three reasons. First, it takes into account the tight economic situation as this is the first time in the EU's history that the financial framework is smaller compared to the previous long-term budget. Second, the share of funding allocated to competitiveness will be increased. Third, the decision regarding rural development funding is in line with Finland's interests," said Minister for European Affairs and Foreign Trade Alexander Stubb.

Key elements of the financial framework

The overall level of commitment appropriations within the MFF ceilings is EUR 960 billion (1% of EU GNI) and EUR 908.4 billion in payment appropriations (0.95 % of EU GNI). With the instruments situated outside the MFF ceilings, the maximum level of commitments is EUR 997 billion (or 1.04% of EU GNI). The figures are based on 2011 prices.

The overall level will be cut by some 4 % compared to the current framework period. Due to the requirements put forward by the European Parliament, the MFF includes significant new flexibility mechanisms which will enable, for example, to transfer payments and commitments from one year to another.

Although agricultural and cohesion policy will remain the biggest expenditure headings, the focus of the MFF will increasingly shift towards competitiveness and growth. Compared to the current financial period, the competitiveness heading will grow by 40 %.

Impact on Finland

The reached agreement is good for Finland. Finland's objective of a moderate funding level was achieved. The lower overall level shows that the Member States' economic restrictions were taken into account. Finland's share of the EU's rural funding will slightly increase whereas our share of cohesion funding will decrease, as was expected. In the MFF, cohesion funding as a whole will be cut by 10 %. Funding for competitiveness is to increase and therefore the total amount of funding received under the sustainable growth heading is expected to remain unchanged.

As regards the system of own resources, Finland did not succeed in promoting its reform proposals which would have simplified and improved the fairness of the Union's financing system.

In 2014–2020, Finland's net position is not to deteriorate significantly in comparison to the current framework period although our net contribution is expected to grow slightly.

"In relation to our gross national income, Finland's net position will not be seriously affected when compared to other net contributors. We expect Finland to continue as one of the smallest net contributors," said Minister for European Affairs and Foreign Trade Alexander Stubb.

Inquiries: Lauri Tierala, Special Adviser to Minister Stubb, +358 40 841 7141, Ministry for Foreign Affairs