The European Council provides a step-by-step timeline explaining the role of each EU institution involved in adopting the EU’s long-term budget, also known as the multiannual financial framework.
Ministers Coordinate Long-Term Budget Negotiations
The long-term budget process begins when the European Commission presents its package of proposals for the next multiannual financial framework. Ministers in the General Affairs Council then take responsibility for coordinating the negotiations on this package. This effort receives support from member states’ ambassadors working through the Permanent Representatives Committee, known as Coreper. Meanwhile, other Council configurations work in parallel on the specific rules for individual spending programmes, such as the Agriculture and Fisheries Council handling the common agricultural policy.
Steering Through the Negotiating Box
The rotating Council presidency steers talks between member states and prepares what is known as the negotiating box. The presidency develops this document over successive versions, choosing whether to include figures while narrowing down options as discussions progress. This mechanism brings together elements that require political guidance and priority-setting from EU leaders, aiming to prepare European Council conclusions on the MFF.
Leaders Provide High-Level Political Direction
EU leaders discuss the MFF at their summits to address features requiring high-level political direction, including overall budget size, spending priorities, and financing methods. In the final phase, the President of the European Council takes the lead. Building on the presidency’s work, the President consults member states, presents compromise proposals, and guides EU leaders toward a political agreement.
| Institution | Primary Responsibility | Key Action |
|---|---|---|
| European Commission | Proposal drafting | Presents the initial MFF package |
| Council of the EU | Coordination and adoption | Coordinates negotiations via General Affairs Council and Coreper |
| European Council | Political guidance | Reaches unanimity among 27 EU leaders on spending levels |
| European Parliament | Consent | Must approve or reject the MFF regulation by a majority |
Parliament Gives Consent to Budget Regulation
EU leaders must reach a unanimous political agreement on the MFF, covering total spending levels, allocations to main policy areas, and financing methods. Because the MFF requires unanimity, the agreement needs support from all 27 EU leaders before serving as the basis for legal acts. Following this, the European Parliament must give its consent to the MFF regulation by a majority of its component members, either approving or rejecting the text.
The formal adoption phase in the Council of the EU requires unanimity for the MFF regulation following the Parliament’s consent. The own resources decision also requires unanimity in the Council after consulting the Parliament, followed by approval from all member states in accordance with their respective constitutional requirements. Finally, the interinstitutional agreement is approved by the Council, the Parliament, and the Commission according to their internal procedures.
