Squaring the (budgetary) circle – Proposals on the 7th MFF (2028-2034)

Key messages

• The seventh Multi-Annual Financial Framework (MFF) that starts in 2028 will play a crucial role in defining the EU’s enhanced resilience and regional cohesion, its path towards the digital and green transitions and addressing emerging priorities. Among these priorities is the imperative to bolster EU security in an evolving geopolitical landscape. This framework must address the critical needs and concerns of European businesses, particularly by fostering the conditions necessary for revitalising the EU’s economic competitiveness. Attaining this objective is essential to ensuring quality employment opportunities, security, and the EU’s continued relevance on the global stage.
• The EU budget holds the potential to effectively revitalise EU competitiveness while simultaneously advancing its social, environmental, and cohesion objectives. However, achieving this requires rigorous strategic prioritisation. Given the inherent trade-offs, decisive choices are essential to select the mechanisms that maximise the impact of limited resources across programmes, support mechanisms, and the MFF’s financing structure, as outlined in this paper. To achieve these goals, resources must not be generated via more business taxation.
• Given the EU’s already high average tax burden compared to global competitors, further tax hikes would risk hindering economic activity, undermining productivity and innovation, and ultimately reducing tax revenue due to lower economic output. Instead, given trade-offs in public funding, the EU must enhance private sector involvement to leverage its multiplier effect. Access to EU funds should be simplified, and private investment prioritized over public spending.

What does BusinessEurope propose?

BusinessEurope urges EU leaders to prioritise the revitalisation of European competitiveness within the 2028-2034 MFF. This requires a strategic, resource-efficient budget that maximizes impact, avoids increased business taxation, and actively leverages private sector investment. Simplify access to funds, prioritise private investment over public spending, and make decisive choices that foster innovation and growth. By doing so, the EU can secure its global relevance, create quality jobs, and strengthen its resilience in the face of evolving geopolitical challenges.