On 20 June 2023, the Commission tabled proposals for a targeted revision of the multiannual financial framework (MFF), which was adopted in 2020. Given the drastic global changes since then with economic and social effects (particularly following Russia’s invasion of Ukraine), the Commission sees no alternative to additional financing in order to deliver on the EU’s objectives. The reinforcements mainly include:

• Establishment of the Ukraine facility, based on grants, loans and guarantees, with an overall capacity of €50 billion in the period 2024-2027 to cater for Ukraine's immediate needs, recovery and modernization;
• Creation of the Strategic Technologies for Europe Platform (STEP) to promote the EU's long-term competitiveness on critical technologies in the fields of digital and deep tech, clean tech and biotech. STEP will build on existing programmes, but should also receive an additional €10 billion;
• Reinforcement of the EU budget by €15 billion to address internal and external dimensions of migration and to strengthen global partnerships;
• A new “EURI instrument” would cover the increased NextGenerationEU funding costs.

Moreover, the EU administrative capacity will be adjusted to cater for the new tasks that have been decided by the co-legislators since 2020 and to meet inflation-adjusted contractual obligations.

Next steps: The Commission proposals need to be adopted by the Council; the European Parliament must give its consent.

The Council started negotiations on the mid-term review of the MFF already in July 2023. The EU leaders held an in-depth discussion at the European Council meeting in October 2023 and invited the Council to take forward the work with a view to reaching an overall agreement by the end of the year.