Multiannual Financial Framework 2028–2034: Commission Proposal Introduces Structural Changes

Key Changes to the EU Multiannual Financial Framework

The MFF forms the basis for the EU budget over seven-year periods. In light of economic, social, and geopolitical challenges—including regional inequalities, food security, climate change, nature and environmental protection, as well as impacts on defense, security, and migration policy—the European Commission presented a proposal in mid-July 2025 for the design of the MFF for the 2028–2034 period. The goal is a prosperous Europe, with a society and economy that are resilient, self-sufficient, and sustainable.

The EU budget is to be substantially restructured. The proposal aligns funding clearly with political priorities while simultaneously simplifying the rules for EU funding. Key elements include:

• Reduction of priority areas from seven to four

• Consolidation and reduction of funding instruments (funds and programs) from 52 to 16

• Introduction of “National and Regional Partnership Plans” (NRPP): Each Member State will prepare a comprehensive plan integrating all relevant funding

The 2028–2034 MFF is intended to provide greater flexibility for rapid action, streamline, harmonize, and results-orient EU financing programs, and boost competitiveness.

Cohesion Policy in the New MFF

Cohesion policy is currently one of the EU budget’s central investment instruments and will continue to be, alongside agricultural policy, a core element. Its goal is to strengthen the economic, social, and territorial cohesion of the European Union and to reduce existing prosperity disparities between regions. By specifically promoting regional potential, it makes a significant contribution to increasing the EU’s growth and competitiveness. In the future, cohesion policy—like agricultural policy or measures for migration and security—will be part of the “National and Regional Partnership Plans” (NRPP). The financial resources will be provided through a new fund, the “European Fund for Economic, Territorial, Social, Rural and Maritime Development, for Sustainable Prosperity and Security (NRP Fund)”.

The NRPP, as the single plan per Member State covering all relevant support measures, is intended to enhance impact, ensure more efficient use of EU funds, and simplify procedures for authorities and beneficiaries. The national plan will be developed and implemented by the Member State in close coordination with the Commission, in cooperation with regions, local authorities, and other relevant stakeholders.

The MFF proposal also provides for the continuation of cross-border cooperation programs—Interreg. These will not be included in the national NRPP but will be described in a separate EU-wide Interreg plan.

Financial Highlights of Cohesion Policy 2028–2034

• Total funding for economic, social, and territorial cohesion, fisheries, and parts of rural development: approximately Euro 453 billion

• For less developed regions:  Euro 218 billion

• 14 percent of funds must be used for social objectives

• For cross-border cooperation under Interreg: approximately Euro 10 billion

Co-financing from national resources will continue to be required. The co-financing rate will be based on the development level of each region.

Impact on Austria

No final amount has yet been determined for Austria’s use of cohesion policy funds under the NRPP. According to an initial proposal by the European Commission, Austria is expected to receive a total of around  Euro10 billion within the NRPP framework, of which at least Euro 0.9 billion is allocated for migration and security measures. An as-yet unspecified portion is reserved for income support in agriculture and fisheries, while the remaining funds can be used for cohesion policy measures, rural development, and fisheries.

In terms of content, successful measures from current EU programs can be continued, and new funding approaches may also be developed. Objectives already pursued under Austria’s cohesion programs include strengthening the competitiveness of SMEs, supporting the just transition, digital transformation, dissemination of innovation across all regions, support for employment, promotion of skilled labor, and social inclusion.

Next Steps

The Commission’s proposals mark the beginning of intensive negotiations with the Member States over the next two years. The implementation of the NRPP is planned from 1 January 2028.

Implications for Agriculture and the CAP

You can read about what the European Commission’s proposal means for the agricultural sector here: Proposal for the EU Financial Framework and the new Common Agricultural Policy from 2028.