The European Commission’s proposed “cash for reforms” approach to the next multiannual financial framework (MFF) could accelerate economic decarbonisation while enhancing competitiveness, resilience, and security. Crucial to achieving that aim is a more holistic approach to policy coordination, with a stronger role for climate and energy policies. Governance must combine agile EU-level coordination with a joined-up and supportive approach to Member State-level planning.
The EU is forging a path towards security, resilience and competitiveness, with a fair decarbonisation as a strong driver for all. In the face of a wide investment gap, additional defence spending needs, and the risk of economic slowdown, the Commission needs to make sure every euro it spends through its budget counts.
The Commission’s proposed approach to the next MFF offers opportunities to make sure the budget more flexibly supports areas where EU spending creates the most added value. Our briefing proposes a package of reforms to allow climate and energy priorities to be tackled more holistically and efficiently.
Recommendations for the 2028–2034 multiannual financial framework (MFF)
Create synergies between climate, energy, competitiveness, resilience and security
Anchor climate and energy policies in the MFF national plans through inclusion of climate and energy in the European Semester, ensuring consistency with the national energy and climate plans (NECPs) and the European Climate Law.
Simplify reporting procedures and strengthen alignment with common priorities
Develop an agile top-down model through the proposed Competitiveness Coordination Tool, to address strategic priorities that transcend national borders, with a clear governance structure and reinforced analytical capacity.
Use EU coordination resources to support joined-up national planning
The EU budget can give Member States the means to produce MFF national plans in a holistic manner, to facilitate climate and energy mainstreaming.
Respect the essential role of local and regional authorities in the design and implementation of policy measures
Incentivising national policy reforms should not come at the expense of existing multilevel governance structures and the balance of competences between national, local and regional authorities.
