Investing in our future. The European Union’s financial framework 2007-2013

The multiannual financial framework (MFF) sets the overall and annual upper limits for the EU budget’s main spending categories, called “headings”. Within each heading, funds are mainly spent through EU programmes. Each programme has specific objectives, duration and resources, set out in a legislative text. The resources allocated to each programme are determined in accordance with the overall limits set by the financial framework.

Annual budgets allocate the EU’s resources among different programmes and other activities, while respecting the limits set by the financial framework. Annual appropriations are finalised and have legal bearing only after the Council and Parliament formally approve the annual budget. The amounts approved by the Council and Parliament are then spent in accordance with the rules set by the financial regulation and each programme’s specific rules.