EU financing for next decade: beyond the MFF 2021-2027 and the next generation EU

Abstract:

This edited volume on the EU Multiannual Financial Framework 2021-2027 is the outcome of an initiative by the Robert Schuman Centre for Advanced Studies at the European University Institute of Florence. In mid-October 2019, academics, think tankers, practitioners and experts in European finance and politics discussed how to improve the Multiannual Financial Framework for the next decade. The discussion was both conceptual and policy-relevant. It was therefore not limited to the MFF but also reflected on the objectives and needs of major EU policies.

This discussion was timed to coincide with the renewal of the 2021-2027 MFF, which was being negotiated by the EU institutions. Subsequently, events changed the timeline. The arrival of the Von der Leyen Commission added a new dimension to the initial proposal (May 2018) by adding the Green Deal, and later, following the pandemic crisis, another new layer: Next Generation EU, which created the exceptional opportunity for the Commission to borrow capital on the financial market and offer it to the Member States partly in grants and partly in loans.

The contributions gathered in this edited volume go beyond the situation in mid-October and take into account the severe impact that Covid-19 has had on the European economies, and in particular the new proposals by the Commission of May 2020 and the European Council agreement of July 2020. Therefore, the present volume offers a global comment on all the issues touched by the MFF and Next Generation EU (NGEU), highlighting the potentialities of the new situation. It provides insights into the ideas of key actors and experts on the practical functioning of the MFF and their reflections on its future development. A common thread links all the chapters: how the MFF and NGEU can drive reform to make the European Union more resilient to face the new challenges of the next decades.

The reader can navigate through the three sections of the book. The first is rich in ideas on how to enhance the MFF as a governance tool which could drive reforms of the EU. The second part focuses on the impact of long-term planning on the most relevant EU policies. The authors highlight current challenges and offer their views on how to make policies more efficient. Finally, the third part presents ideas on how to introduce innovation in the financing of the European Union with additional creative financial tools.

Table of Contents:

• Part 1 | The Multiannual Financial Framework: a driver of reform
  • The Multiannual Financial Framework 2021-2027: Ambition or Continuity? | Alfredo De Feo
  • The Awakening of the Sleeping Beauty? | Alain Lamassoure
  • The Dual Nature of the EU Multiannual Financial Framework | Stefan Lehner
  • The MFF Process and Global Challenges | Pier Carlo Padoan
  • Innovations in Financing the EU | Wilhelm Molterer
  • The Importance of Own Resources in the EU Budget | Ivailo Kalfin
  • How and Why Did the European Parliament Influence the Reform of the Own Resources System? | Anne Vitrey
  • Improving the Effectiveness of EU Policy: the Challenges of Auditing the 2021-2027 MFF | Jame McQuade
• Part 2 | Shaping EU Policies Towards 2030
  • The Reinforced Conditionality Approach of the 2021-27 MFF | Viorica Vita
  • The Budgetary Impacts of the Common Agricultural Policy | Alan Matthews
  • Cohesion and Stabilisation in the Future MFF | László Andor
  • Cohesion, Values and Natural Resources - Old Policies or Perspectives for All Regions of Europe | Reimer Boege
  • Climate Action: A Policy With the Potential to Redefine the EU Budget | Alessandro D'Alfonso
  • Reactions to the Commission's Proposals on the Financing of Migration and Foreign Policy | Fernando Nelli Feroci
  • EU Migration Policy: Will More Money Solve Old Conflicts? | Florian Trauner
  • EU Funding for External Action. The Evolution of Governance and Prospects for the Next Decade | Myriam Goinard
• Part 3 | MFF 2021-2027: The Transnational Challenges - the Euro, the Green Deal, COVID-19
  • Euro Area Macroeconomic Stabilisation and the EU Budget: A Primer | Johannes Lindner & Sander Tordoir
  • Building a Euro-area Budget Inside the EU Budget: Squaring the Circle? | Grégory Claeys
  • A Relevant MFF in the Long Term: Innovative Yet Feasible Reforms | Marta Pilati and Fabian Zuleeg
  • Maximising Innovation Funding in the EU's Next Long-term Budget | Eulalia Rubio
  • Strengths and Weaknesses of the EU Budget Flexibility 'toolbox' | Magdalena Sapala
  • Innovation Investments for the Future | Leena Sarvaranta
  • An Innovative Financing Mechanism to Boost Sustainable Development | Carla Montesi
  • A Package Deal to Exit From Net Balances in the EU Budget | Giacomo Benedetto
  • Innovative Options for a Sustainability-oriented Reform of the EU Own Resources System | Margit Schratzenstaller and Alexander Krenek
  • The MFF 2021-2027: A Game Changer? | Alfredo De Feo

• Alternative Source 1

Bruegel: External Publication, December 2020: Building a Euro-area Budget Inside the EU Budget: Squaring the Circle? https://www.bruegel.org/2020/12/building-a-euro-area-budget-inside-the-eu-budget-squaring-the-circle/

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