The Multiannual Financial Framework (MFF) sets the maximum annual amounts (“ceilings”) for the expenditures of the European Union (EU) per policy area and per year and in this way it can be seen as a multiannual budgetary planning tool of the EU. The MFF provides predictability of EU spending and guarantees compliance with the budgetary discipline and the sound financial management of Union funds.

According to Art. 312 of the Treaty on the Functioning of the EU (TFEU) the MFF shall be established for a period of at least five years. The current one covers the seven-year period from 2021 until 2027.

The Recovery Plan for Europe

In response to the unprecedented crisis, caused by the COVID-19 pandemic, on 27 May 2020 the European Commission presented its proposal for a Recovery Plan for Europe which builds on two pillars – a new recovery instrument NextGenerationEU and the MFF for 2021-2027.

The EU’s long-term budget, coupled with the recovery instrument NextGenerationEU, is the largest stimulus package ever financed through the EU budget. NextGenerationEU is a EUR 750 billion temporary recovery instrument to help repair the immediate economic and social damage brought about by the coronavirus pandemic. It will be financed through funds borrowed on the international capital markets.

The Recovery and Resilience Facility is the centrepiece of NextGenerationEU with a budget of EUR 672.5 billion in loans and grants available to support reforms and investments undertaken by EU countries. The aim is to mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.

On 17 December 2020 the 2021-2027 MFF and the Recovery Instrument were adopted. A more detailed breakdown of the resources available under the two instruments can be seen in the graphics below.

The resources Bulgaria is expected to receive from the long-term EU budget for 2021-2027 and from the recovery instrument NextGenerationEU are presented in the graphic below.

 

More information on the Recovery Plan for Europe can be found here, including allocations per Member States.