EMPL Committee discusses Commission proposal.

In mid-January, the Committee on Employment and Social Affairs (EMPL) of the European Parliament discussed the draft opinion on the draft interim report on the proposal for the multiannual financial framework (MFF) for the period 2028-2034, prepared by the responsible Committee on Budgets. The debate revealed widespread rejection of the Commission's proposal. Many MEPs called for the concept of merging various funds to be rejected and for the independence of the European Social Fund Plus (ESF+) to be preserved.

Multiannual Financial Framework

On 16 July, the European Commission presented a proposal for the next multiannual financial framework (MFF) (see news item from July 2025). The aim of the proposal is to strengthen Europe’s competitiveness and to secure strategic future investments. The structure of the budget is based on four pillars: promoting competitiveness through a new Competitiveness Fund with a volume of €409 billion; strengthening Europe’s international role with €200 billion; protecting citizens and enhancing crisis resilience with €100–110 billion; and investments and reforms amounting to €865 billion. These funds are to be allocated via National and Regional Partnership Plans (NRPPs).

Under the banner of "simplification", 14 previously separate programmes are to be combined in the NRPPs, including the Cohesion Fund, the Common Agricultural Policy and the ESF+. According to the European Commission's proposal, after deducting direct payments under the Common Agricultural Policy and Social Climate Fund resources, 14 per cent of the remaining NRPP funds – around €100 billion – will be allocated to social purposes.

Recovery and Resilience Facility as a model

The model for the NRPPs is the Recovery and Resilience Facility (RRF), which runs until the end of 2026. It was established to address the economic consequences of the COVID-19 pandemic. Under the RRF, Member States receive financial resources to strengthen their competitiveness and resilience. The RRF specifically promotes the green and digital transitions, social resilience and structural reforms. The concrete national plans are negotiated between the European Commission and the Member States. The Commission links the disbursement of funds to the implementation of the agreed reforms and investments. The country-specific recommendations adopted under the European Semester are a central component of the RRF plans. For example, payments to Belgium, Austria, Slovenia and Spain were linked to reforms in the area of pension provision.

The Commission's proposal for the NRRP adopts this principle. Here, too, payments from the MFF are to be linked to national reform progress based on the country-specific recommendations. According to reports, senior EU officials have stated that this instrument could be used to put pressure on Member States to make their pension systems more sustainable.

Loss of parliamentary control

In the EMPL Committee, the two rapporteurs from the lead committee on budgets (BUDG), Mureșan and Tavares, criticised the fact that the NRPP would remove a significant portion of EU funds – around 40 per cent – from the control of the European Parliament. According to them, the use of funds would be negotiated bilaterally between the European Commission and the respective Member States, while the assessment of whether targets had been met would be carried out solely by the European Commission. They also refer to criticism from the European Court of Auditors, according to which the RRF has so far largely failed to meet its targets and has provided little economic stimulus. Implementation is also progressing slowly.

What happens next:

The opinion of the EMPL Committee focuses on social policy, the labour market and the national and regional partnership plans (NRPP). It is being drafted by rapporteur Klara Dobrev (S&D). The vote in the EMPL Committee is scheduled for 25 and 26 February.

In addition, the ITRE (Industry, Research and Energy), CULT (Culture and Education), REGI (Regional Development), ENVI (Environment, Public Health and Food Safety), DEVE (Development), AGRI (Agriculture and Rural Development) and LIBE (Civil Liberties, Justice and Home Affairs) committees are also preparing opinions on the proposal. The opinions of these committees will be incorporated into the BUDG interim report, which is expected to be voted on in the European Parliament plenary in May 2026.

The President of the European Council, António Costa, has set himself the goal of reaching an agreement among the Member States before the end of 2026.