EU Multiannual Financial Framework for 2028−2034

One of the key themes defining European policies in the coming years, the Multiannual Financial Framework (MFF) of the European Union for 2028–2034 will also be a key priority on Finland’s EU agenda.

The coming MFF will determine the volume and allocation of EU funding for the period in question. Finland would like to see funding more strongly directed toward core political priorities, such as strengthening European defence and competitiveness.

The European Commission presented its key proposals for the forthcoming MFF package on 16 July 2025. The package also includes the revenue side: a proposal for the EU’s own resources system.

The Commission is now proposing an overall level of funding that is significantly higher than the current one. All financial instruments included, the proposal totals approximately EUR 1,893 billion, or 1.35% of the EU’s GNI at 2025 prices. This represents an increase of EUR 572 billion over the seven-year framework period.

In Finland’s view, the overall level proposed is too high, even though the thematic priorities go into the right direction.

It is essential to agree on an overall level that will not make Finland’s burden of payment unreasonably heavy but would still enable the implementation of key priorities, such as strengthening defence and competitiveness, and secure Finland’s major receipts, such as funding for agriculture.

The Commission also proposes major restructuring and simplification of the MFF, with the goal of making it more flexible so that better use can be made of future funding to respond to evolving EU needs and potential crises.

Finland supports the Commission’s proposal to reduce the number of MFF headings and funding programmes by consolidating policy sectors and programmes into wider entities in order to better adapt to evolving circumstances and achieve synergy benefits.

Finland welcomes the proposed greater flexibility within the MFF, and it is also open to strengthening the performance-based approach as a way of improving the effectiveness of EU funding. It finds that such an approach to funding directly targeted at Member States in particular would improve the effectiveness of EU funding and ensure that EU funds can be implemented more efficiently.

Focus on the wider picture

Russia’s aggression against Ukraine, the need to strengthen European defence, tightening trade policies, climate change, technological advancement and improved European competitiveness are some of the major challenges facing the EU. They highlight the need to improve the design of EU support to better achieve shared priorities and implement common policies more effectively.

The European Commission believes that the proposed MFF is an opportunity to design a more policy-oriented, simpler, impactful and responsive budget.

Finland underlines that its special position as Russia’s neighbour should be concretely reflected in EU funding. Pursuant to its goal to have funding targeted at countries on the eastern frontline, Finland endorses the Commission’s proposal to give greater priority to the length of external land borders as a criterion for resource allocation.

For Finland it essential that European defence capabilities will be strengthened quickly, especially to respond to the long-standing threat posed by Russia.

Finland supports the Commission’s proposal to significantly increase the amount of funding to support defence in the next financial framework. Finland is also open to various funding solutions with a view to stepping up comprehensive security in Europe.

Successful early influence on MFF content

The Commission’s budget proposal will increase funding for defence fivefold and for military mobility tenfold and double the current level of research and innovation funding. Competitiveness  investments in biotechnology and bioeconomy will increase fivefold. From Finland’s perspective, these are highly important priorities for EU-level funding. The manifold increase in military mobility funding in particular will create new opportunities for Finland.

The Commission proposes a new European Competitiveness Fund to boost competitiveness within the EU. The current framework programme for research and innovation, Horizon Europe, would be tightly connected to the new Fund. In this respect, the Commission’s proposal would double the current budget and refocus it on defence research and bioeconomy, among other fields.

Finland considers it appropriate to provide diverse support, including in the form of grants, loans and mixed funding, at different stages of projects in order to strengthen competitiveness.

In Finland’s view, the importance of funding allocated for defence and dual-use purposes should be emphasised extensively in competitiveness funding.

Finland also supports the Commission’s objective of simplifying procedures, especially in a way that would improve access to financing for SMEs. The proposed increase in research, development and innovation funding is also welcome.

Finland’s top priority is to ensure that research, development and innovation funds continue  to be based on open competition and that a high standard of quality in the form of EU-level funding will be secured. As is the case for projects funded through Horizon Europe, open competition and a high standard of quality should also be decisive for receiving funding from the Competitiveness Fund.

The proposal would significantly raise the level of funding for home affairs and give special consideration to a common border with Russia as a particularly favourable allocation criterion. In Finland’s view, it is essential to ensure that the share of funding proposed for Finland from the Home Affairs Funds is secured, and that it is implemented with flexibilities to support the vitality of border regions.

The Commission proposes that future EU funding should be more closely tied to respect for the rule of law. It is important for Finland that the financial framework and related other EU funding will be subject to the strictest conditionality that corresponds at least to the current level, including conditionality linked to compliance with the rule of law.

The Commission also proposes continued strong support for Ukraine. In line with its Government Programme, Finland is strongly committed to supporting Ukraine and its reconstruction and remains open to various financing solutions in support of the country.

Overhaul of Common Agricultural Policy funding structure

The Commission proposes that direct funding to Member States in the fields of agriculture, cohesion and internal affairs would be consolidated under a single heading and allocated through each Member State’s national and regional partnership plans.

In Finland’s view, drawing up a single national plan on different funds could promote synergies across policy actions. Finland’s key objective in the negotiations is to ensure sufficient flexibility in the implementation of funding within the NRP programme.

The Commission proposes a major overhaul of the structure of the common agricultural policy funding and an abolishment of the current pillar-based system.

Finland gives priority to safeguarding funding that has direct effects on the generation of income for farmers in particular. Agriculture must remain viable even under the challenging conditions in the country. Securing funding that affects farmers’ incomes is therefore critical for Finland. With regard to the Common Agricultural Policy, Finland aims for the best possible receipts. According to its initial assessment, the so-called earmarked funding for agriculture proposed by the Commission seems insufficient.

The EU’s own resources

The Commission proposes comprehensive changes to the EU’s own resources system, or the revenue side of the EU budget. Proposed new sources of EU revenue include own resources based on electronic waste, on a new excise duty on tobacco products, and on contributions by companies with annual net turnover above EUR 100 million.

Finland finds that instead of materialising as concrete transfers of funds from national budgets to the EU budget, possible new own resources should help to achieve genuine added value at the EU level.

Long negotiations ahead

The Commission proposal has triggered a lengthy negotiation process. Adoption of the MFF regulation requires unanimous agreement in the Council and approval by a majority of the European Parliament.

Ministerial-level negotiations will be held in the General Affairs Council, with the first discussion at the level of heads of state or government expected to take place in December 2025. Following the usual timeline, agreement should be reached by the end of 2026, or in the March 2027 European Council at the latest.

Finland has set out from the principle that it will examine the details of the Commission’s proposal within the overall financial framework, refining its position as the negotiations proceed. The country’s final positions will be determined on the basis of the emerging overall package towards the end of the negotiations, taking into account the country’s overall interests.