Potential increase in CAP funding in next MFF

Commission President von der Leyen sent a letter to the Cypriot Presidency of the Council and to the President of the European Parliament yesterday 6 January 2026, in which she proposed to make additional resources available as of 2028 to address the needs of farmers and rural communities (with thanks to Politico Europe for the link).

This letter was sent on the same day as the Cyprus Presidency invited all Agriculture Ministers to a meeting also attended by the Commissioners for agriculture, trade and health to provide reassurances to Italy and other Member States to sign up to the contentious EU-Mercosur free trade agreement on Friday.… Read the rest

The role of borrowing in the EU’s MFF budget discussions

The New Year 2026 will see negotiations on the EU’s next medium-term budget step up in gear. Many Member States have called to set a deadline of end 2026 to agree on the next Multi-annual Financial Framework (MFF). This is necessary if the new MFF programmes are to start on 1 January 2028.

That this is a very ambitious deadline is an understatement. The Danes set a cracking pace in organising the Council’s MFF discussions under their Presidency, and presented a first draft of the famous ‘negotiating box’ to the European Council meeting in December 2025. This draft, without figures, was presented under the sole responsibility of the Presidency.… Read the rest

Horizontal Principles in the Next MFF and Implications for the CAP

Merging the EU’s Common Agricultural Policy (CAP) into the single National and Regional Partnership (NRP) Fund raises more than just the fungibility of resources between the different priorities in that Fund (though this is largely neutralised for the CAP by ring-fencing a minimum amount for CAP income support and fisheries interventions, for further details see my post on this topic). The CAP is also subject to a new set of management regulations that will have important implications for the governance of the policy.

Elements of governance that are affected include the division of competences between the Commission and Member States under shared management, the preparation, approval and monitoring of the CAP chapter in the NRP Plans, performance monitoring, and the role of partnerships.… Read the rest

Which countries gain or lose from the National and Regional Partnership Fund?

This is a revised version of the original post, to take account of the very helpful comment below which pointed out an error in my original Table 1. This is the strength of blog posting and I am very happy to make the correction.

One of the ideas stressed in the Commission’s presentation of the CAP budget proposal in the next MFF is that the €296 billion ring-fenced for CAP income support and some fisheries expenditure is a minimum amount. Member States will be able to add to that from their overall ceilings in the National and Regional Partnership Fund (NRPF) when they design their National and Regional Partnership Plans.… Read the rest

The Commission’s CAP budget proposal in the next MFF

Please note that I have updated and revised some of the commentary in this post in a later one here. This later post gives a a more optimistic view of the likely size of the CAP budget though still with caveats. I would urge readers to also read this later post in conjunction with this one. I have left this post online for the record.

The publication of the Commission’s MFF proposals and related legislative proposals on Wednesday 16 July was chaotic, in part it seems because negotiations within the Commission went down to the wire right up to the afternoon of the day of publication.… Read the rest

Fitting the CAP into the next MFF long-term budget

The Commission Communication on The road to the next multiannual financial framework published in February 2025 put forward several proposals for the reform of the MFF structure prior to the formal legislative proposal now pencilled in for July 2025. For the Commission, the key priority is the scale of the budget and the means to finance what it sees as inevitably greater expenditure in the coming programming period. It notes in bold print on page one of the Communication that Europe needs to square the circle: “there cannot be an EU budget fit for our ambitions and notably ensuring the reimbursement of NextGenerationEU, and, at the same time, stable national financial contributions without introducing new own resources”.Read the rest

Commission publishes Member State envelopes for direct payments and rural development 2021-2027

The Commission has published without fanfare on its MFF website the breakdown of national pre-allocated ceilings for direct payments and rural development for the coming 2021-2027 programming period as well as their scheduling over the seven-year period. These figures are based on the European Council’s MFF conclusions in July 2020 and assume that these conclusions will eventually receive the approval of the European Parliament. As I write this, this is not a foregone conclusion. Talks between the German Presidency and the Parliament negotiators on the MFF package made no progress yesterday evening despite an attempt by the Presidency to break the logjam by offering to find additional funds for budget lines supported by the Parliament at a mid-term review of the MFF.… Read the rest

The CAP in the 2021 budget negotiations

The Council Presidency, European Parliament negotiators and the Commission have had several trilateral meetings during August and September to try to reach agreement on the seven-year Multi-annual Financial Framework (MFF) following the European Council conclusions in July. The aim is to reach agreement by the end of October, but according to the Parliament’s negotiators, these discussions are not going well. The Parliament is pointing to the safety net procedure in the Treaty which, in the event of no agreement, provides for a contingency plan which would allow sectoral programmes to start functioning on 1 January 2021 on the basis of the 2020 amounts.… Read the rest

Commission proposes increased agricultural spending in reinforced MFF

My previous post discussed the rationale for the Commission’s revised MFF proposal put forward on 27 May 2020 which includes a proposal for a European Recovery Instrument (ERI) to finance front-loaded expenditure in the next MFF plus a slightly revised ‘standard’ MFF (which the Commission refers to as a ‘reinforced’ MFF). In broad terms, the reinforced MFF allows for commitment appropriations amounting to €1,100 billion over the 2021-2027 period, while the ERI would help to finance a further €750 billion of spending in the 2021-2024 period, in constant 2018 prices.  Together, they add up to a total proposed spending of €1,850 billion over the MFF period.… Read the rest

Commission proposes European Recovery Fund as part of revised 2021-2017 MFF

The stakes for the European Union have never been higher. In a year when the latest Commission economic forecasts project a 8% decline in GDP as a result of the measures taken to contain the spread of the coronavirus, the question is whether the European Union can provide a response that is macroeconomically significant and builds on the principles of solidarity inherent in the concept of a common citizenship. If it fails to deliver, we can say good-bye to the European Union and prepare to take our chances in an unforgiving geo-political world where the only other leaders are an increasingly authoritarian and self-centred China and an increasingly unpredictable and self-centred America.… Read the rest