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Multiannual Financial Framework: How Does It Impact the EU’s Eastern Neighborhood and Enlargement?
WHAT IS IT ABOUT: In July 2025, the European Commission unveiled its proposal for the next long-term EU budget, the Multiannual Financial Framework (MFF) for 2028–2034, with a total envelope of nearly €1.98 trillion. The Commission proposed a fundamental overhaul to center the MFF more strongly on security, defense, and competitiveness, as well as streamlining programs. For the EU’s neighborhood and accession candidates, preexisting programs (like the “Pre-Accession Program”) will disappear. Instead, the instrument will be structured around six geographic pillars, among which the “Europe” pillar (with a size of €43 billion) will cover EU candidate and neighborhood countries (with additional €100 billion reserved separately for Ukraine’s reconstruction outside MFF ceilings).
WHAT’S AT STAKE: The size of the Global Europe pillar of the MFF has been increased by 75 percent. Yet, given criticism of its size by member states, it is still unclear what the final figures will look like. The proposal aims to strike a balance between flexibility (non-programable actions like humanitarian aid and crisis response) and predictability (programable actions). However, since both accession candidates and the EU neighborhood will be merged in one overall pillar, it will likely generate trade-offs among different interests and a competition for funds. Furthermore, for the moment, the impact of EU enlargement is not covered in the MFF. Though – given its temporal scope until 2035 – the accession of Montenegro, Albania, and potentially also Iceland would need to be reflected. This is not to mention a potential accession of Ukraine that would necessitate fundamental changes to the MFF’s structure.
WHAT HAPPENS NEXT: European leaders agreed on the new structure of the next MFF in principle at the European Council in December 2025. Now, negotiations at the Council are in full swing. The current and upcoming Council Presidencies aim at concluding negotiations by the end of the year – not only regarding implementation of the new structures but also in light of the election calendar in 2027. Next year, elections will take place in major EU member states, most notably in France in spring 2027.
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