Pexels - Artem-Podrez
Much remains to be negotiated
ed* No. 02/2026 – Chapter 5
The European Commission’s current proposal for the MFF forms the basis for further negotiations. The MFF requires unanimity in the Council as well as the consent of the European Parliament.
The European Parliament is critical of parts of the proposed new budget architecture. In particular, the bringing together of numerous previously separate programmes within the National and Regional Partnership Plans has raised concerns. Parliament is particularly concerned that its budgetary and oversight powers could be weakened in the implementation of the new instruments.
The National and Regional Partnership Plans are an instrument that gives the European Commission considerable room for manoeuvre in shaping policy and could contribute to shifting the balance of power between the institutions. Issues such as the design of social security systems are, however, highly politically sensitive and must, for reasons of democratic legitimacy, continue to be decided through the political process in the Member States.
In an analysis co-authored with David Bokhorst and requested by the European Parliament’s Committee on Budgetary Control, Zeitlin also sees opportunities for stronger parliamentary oversight in the bringing together of programmes. Provided that shared management is implemented as proposed, parliamentary oversight under the Partnership Plans could even become simpler and more effective than under the currently highly fragmented budgetary system. The European Parliament could draw on the Commission’s supervision of national audit authorities, the work of monitoring committees involving stakeholders, and audits by the European Court of Auditors. At the same time, Parliament would need to build additional capacity and expertise to assess the fulfilment of milestones and targets.
The Council has now broadly endorsed the new structure of the Partnership Plans. In its partial negotiating position from June, it also maintains a close link between reforms, investments and EU funding. However, negotiations are continuing on key questions concerning the detailed design. These include, in particular, how reforms and investments are to be linked to the disbursement of EU funds and what role the country-specific recommendations should play.
The aim is to reach agreement on the financial framework by the end of 2026. The necessary legal acts are then to be adopted in 2027 so that the new MFF can enter into force on 1 January 2028.