On 29 June 2011 the European Commission presented the Multi-annual Financial Framework (MFF, formerly 'financial perspectives') - a document which presents the Commission's plans on how to spend EU money for the period 2014-2020. The MFF translates into financial terms the Union's political priorities.

The MFF must be seen as a mechanism which ensures that EU spending is predictable and at the same time subject  to budgetary discipline. It defines maximum amounts ('ceilings') available for each major spending area ('heading') of the EU budget. De facto the MFF sets the political priorities of future years and can therefore be considered to be constituting a political as well as budgetary framework for the Union.

The European Parliament and the Council agree each year on the budget for the subsequent year.

The publication of the MFF document is the starting point for intense negotiations between EU institutions and Member States as well as for intense lobbying from different stakeholders.

Regional governments and administrations will be a critical partner in these discussions, particularly on the future of structural funds, but also on the future of innovation and research programmes, education and social policy programmes.

Main increases for following policy areas:

• Infrastructure facility: big increase (over 200%)
• R&D and Education: increase of 48%
• Global Europe: increase of 23%

OTHER CHANGES:

Research and Development:

• Creation of a new Framework Programme for Research and Innovation – Horizon 2020 
• to ensure more coherence in R&D funding and to bring research and innovation actions together

Cohesion Policy:

• CP will be more systematically tied to the Europe 2020 goals
• It will have a new architecture introducing “transition” regions category with a GDP more than 75% but less than 90% of the EU average to replace “phasing in/out” system
• EC suggests concluding partnership contracts with the MS, to make sure funding will be spent according to the Europe 2020 goals
• Concentrating largest share of cohesion funding on the poorest regions 

New Connecting Europe Facility:

• Will fund pre-identified transport, energy and ICT priority infrastructures the pan-European basis
• Will be centrally managed and will be funded by a dedicated budget and through ring fenced amounts for transport in the Cohesion Fund

Common Agriculture Policy:

• Declining share of EU budget
• Greater alignment with Europe 2020
• More conditionality: 30% of direct support conditional on “greening of CAP”
• Capping the level of direct payments

Education and culture:

• EC proposes a single, integrated programme on education, training and youth, focusing on developing skills and mobility - ‘Education Europe’
• New programme for culture and audiovisual industry – ‘Creative Europe’ – bringing together the current Culture and MEDIA programmes