While the news that the EU decided to provide Ukraine with another €50-billion support package dominated headlines, the leaders at the special EU Summit in Brussels also decided to revise the EU’s long-term budget, the Multiannual Financial Framework (MMF 2021-2027). The MFF sets the annual limits on our commitments and payments in all policy areas.
In particular, apart from the support package to Ukraine – €17 billion in the form of non-refundable support and €33 billion in the form of loans – the revised MMF earmarked €14.6 billion to the following sectors:
- €2 billion for migration and border management
- €7.6 billion for neighborhood policy
- €1.5 billion for the European Defence Fund through the Strategic Technologies for Europe Platform (STEP)
- €2 billion for the flexibility instrument
- and €1.5 billion for the Solidarity and Emergency Aid Reserve (SEAR)
In addition, the European Council agreed to increase the budget by €64.6 billion for the period 2021-2027, including €33 billion in loans and €10.6 billion in reallocations of funds. The new funding amounts to €21 billion, which is three times less than the European Commission’s initial proposal in June.
