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The European Commission's ReArm Europe Plan/Readiness 2030, presented in March 2025, proposes to leverage over €800 billion in defence spending through national fiscal flexibility, a new €150 billion loan instrument (SAFE) for joint procurement, potential redirection of cohesion funds, and expanded European Investment Bank support. It also aims to mobilise private capital through the savings and investments union. ReArm Europe has sparked debate. While many welcome its ambition and the EU's growing ...

On 11 February 2025, the European Commission adopted the first work programme (2025 CWP) of the von der Leyen II Commission. Building on the reports by Enrico Letta, Mario Draghi and Sauli Niinistö, and in line with the Commission President's political guidelines, the CWP places a strong emphasis on competitiveness, simplification and implementation, and preparedness. These will remain key horizontal priorities for the entire Commission mandate. In terms of structure, the CWP follows the seven headline ...

This study seeks to provide a concise and succinct overview of the structure, key facts and figures, and rules and procedures of the EU budget, and informs on the latest developments in EU finances and budgeting. It aims to serve both as a reference guide for experienced EU budget actors and as a primer for newcomers to the EU budget. It continues an annual series of 'Outlooks' produced by the European Parliamentary Research Service (EPRS) over the past eight years. This study analyses the expenditure ...

The 2026 EU budget will be the second to last one under the current multiannual financial framework (MFF), which covers the period from 2021 to 2027. The European Parliament contributes to shaping proposals for the next year's European Union budget through a set of guidelines reflecting its stance. The draft guidelines, as adopted by the Committee on Budgets (BUDG) on 20 March 2025, express Parliament's commitment to building a resilient, sustainable and prosperous future for the EU. Parliament is ...

EU Heads of State or Government will hold their first discussion on the post-2027 multiannual financial framework (MFF) at the European Council meeting on 20-21 March 2025. Since 1988, when an interinstitutional agreement introduced the first binding MFF, the European Council has played a central role in the process leading to its adoption. In 1992, the Lisbon Treaty established a new procedure whereby the MFF would come into being through the adoption of a regulation. The European Council was not ...

This in-depth analysis reviews the Debt Sustainability Analysis (DSA) that guides the implementation of the new Economic Governance Framework. It evaluates the adequacy of the methodology, with a focus on the changes introduced in the DSA to make it fit for the multi-annual character of the framework. While the DSA is not far from the state-of-art, the way the framework handles uncertainty is suboptimal. The study notes a few other areas where the analysis could be improved, namely potential output ...

The adoption of the next multiannual financial framework (MFF) for the period from 2028 will be one of the second von der Leyen Commission's defining projects. Striking a delicate balance between the EU's growing financial needs and many Member States' reluctance to shoulder higher payments to the EU has always been a challenging task. However, never before have the EU's many financial needs been greater – and, at the same time, Member States' budgets are under heavy constraints. On the expenditure ...

The original full study examines performance-based budgeting (PB) and mainstreaming, two relatively novel approaches to the governance of public expenditure which have become increasingly used in EU spending programmes. The two approaches have certain common features but differ in focus. To inform debate around the next multi-annual financial framework (MFF), this study assesses how the two have functioned in practice, seeking to identify shortcomings and recommend possible remedies.

Gender-responsive budgeting is a practical tool that can be applied systematically throughout the budgetary cycle to ensure that resources are distributed equitably and that spending supports gender equality. As well as helping to ensure that budgets deliver maximum value for citizens, gender-responsive budgeting supports other policy objectives connected with efficiency, transparency and accountability. Under the Treaties, the EU has an obligation to promote gender equality and a firm basis to use ...

This study examines the implications of future enlargements for the next MFF. It reviews adjustments made to the EU budget during past enlargements and estimates the budgetary costs of the accession of all current candidate and potential candidate countries (excluding Türkiye) under three alternative scenarios which distinguish between the number of enlargement countries and the timing of enlargement. It then provides policy recommendations for adapting the next MFF to enlargement. The study was ...