What part of the MFF funds EU external action and development cooperation?

Under the current 2021-2027 MFF, most EU external action and development cooperation is funded under heading 6, called ‘neighbourhood and the world’. This heading brings together the EU’s main external financing instruments and sets a multi-year ceiling for spending beyond its borders. The largest instrument under heading 6 is the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI–Global Europe). For the 2028-2034 MFF, the European Commission has proposed a successor: the Global Europe instrument.

Inside the EU’s long-term budget: The multiannual financial framework explained

Dossier 09 January 2025

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The multiannual financial framework (MFF) is the EU’s long-term budget, shaping its priorities at home and its influence abroad over a seven-year period. While the current €1.2 trillion framework runs until 2027, discussions are underway for the 2028-2034 MFF.

EU external action is increasingly central to the MFF. Once a vulnerable budget line, it is now a test of whether the EU can act as a credible geopolitical and development actor on a tense global stage. ECDPM has accompanied this evolution: from explaining and analysing the EU’s external budget and serving as an embedded evaluator of the external financing instruments, to contributing evidence and analysis to the design of the EU’s external action toolbox and new Global Europe instrument.

This dossier presents our work on the multiannual financial framework and its implications for Europe’s partners. It brings together our latest work on the 2028-2034 MFF, highlights our impact and offers insights into the current and past frameworks.

Last updated July 2026

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Frequently asked questions about the MFF

The Multiannual Financial Framework is the European Union's long-term budget. It sets the maximum annual amounts the EU can spend across different policy areas over a seven-year period. The next period spans 2028-2034.

The MFF is not only a budget, but a strategic tool that determines how much the EU invests in development, humanitarian aid, enlargement and partnerships with countries in Africa and beyond.

Decisions taken during MFF negotiations shape the EU’s credibility as a global actor through the funding made available to partners, the conditions attached to that support, its ability to respond to crises and how it competes and cooperates with other powers.

The MFF sets multi-year limits on how much the EU can spend each year, in total as well as under broad policy areas known as ‘budget headings’. Each heading covers a cluster of programmes – for example, single market and innovation, cohesion policy, migration and border management, or external action – and has its own annual limit on commitments and payments.

The current MFF also includes special instruments and flexibility mechanisms that allow the EU to react to crises and unforeseen events beyond the spending ceilings, such as the Flexibility Instrument or the Solidarity and Emergency Aid Reserve. These arrangements are set out in the MFF Regulation, which establishes the EU’s multiannual budgetary framework and provides the basis for the annual budget process.

Under the current 2021-2027 MFF, most EU external action and development cooperation is funded under heading 6, called ‘neighbourhood and the world’. This heading brings together the EU’s main external financing instruments and sets a multi-year ceiling for spending beyond its borders, including on development cooperation, neighbourhood policy, humanitarian assistance and external action priorities.

The largest instrument under heading 6is the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI–Global Europe). It brings together most EU external financing tools, including funding previously provided through the European Development Fund, and combines geographic, thematic and rapid-response programmes. Through these mechanisms, the EU supports partnerships with neighbouring countries, with Africa and other regions, addresses global challenges such as climate change and migration, and responds to crises.

For the 2028-2034 MFF, the European Commission has proposed a successor: the Global Europe instrument. Negotiations are currently underway between the EU institutions on its structure, governance, priorities and budget.

The Global Europe instrument consolidates existing instruments into a single, more flexible architecture, with a greater focus on EU geopolitical and economic interests. It includes new support for European competitiveness and a hardening of migration conditionality. The proposal aims for greater EU agility, notably by removing many binding spending targets, increasing non-programmable funding and expanding the financial toolbox. But these changes raise significant concerns about predictability, oversight, the dilution of specific mandates and the politicisation of humanitarian aid.

The European Commission launches the process by proposing a detailed regulation for the next MFF, including the overall size of the budget, the structure of headings and special instruments and indicative allocations for major programmes. On this basis, EU member states in the Council negotiate the package, which they must ultimately adopt unanimously. The European Parliament must give its consent to the MFF as a whole and co-legislates on key elements of sectoral programmes that implement it.

Following the Commission’s proposal in July 2025, negotiations are now underway between the EU institutions and member states on the size, structure and priorities of the 2028-2034 MFF. These negotiations are taking place against the backdrop of major political debates on the repayment of NextGenerationEU debt, continued support for Ukraine, climate and industrial policy objectives, and the EU’s role in an increasingly contested geopolitical environment.

ECDPM has worked on several successive multiannual financial frameworks, combining analysis of EU budget proposals with close tracking of negotiations and implementation, including in partner countries. Our role has grown over time: for instance, ECDPM was the only think tank involved in the midterm evaluation of NDICI-Global Europe.

Our work focuses in particular on how the MFF shapes the EU’s external action – including development cooperation, neighbourhood policy, climate and human development, and partnerships with Africa and the wider world.

ECDPM contributions to EU processes on the MFF

Get in touch

Would you like to know about our work on the EU’s long-term budget, engage our expertise or share your thoughts? Get in touch with Alexei Jones, Mariella Di Ciommo or Andrew Sherriff. For media enquiries, please contact Isabell Wutz or Virginia Mucchi.

ECDPM impact on the MFF negotiations

The Polish Presidency of the Council of the EU formally invited ECDPM to brief the Ad Hoc Working Group on the MFF (Global Europe Instrument) on 2 March 2026. 'The Presidency considers that it is in the interest of the Council to be able to benefit from the expertise of these third parties.'

Alexei Jones has been quoted in Devex and interviewed by Euronews on what the current MFF negotiations mean for sustainable development.

ECDPM was the only think tank involved in the mid-term evaluation of NDICI-Global Europe, with findings are already written into EU Council conclusions and EU Commission documents.

In 2023, Alexei Jones appeared as a panellist in Panel 1 on Governance and scrutiny of Global Europe, in a European Parliament Public Hearing that directly fed into Parliament’s mid-term evaluation recommendations.

Negotiations on the 2028-2034 MFF
Implementation of the 2021-2027 MFF
Negotiations on the 2021-2027 MFF
Implementation of the European Development Fund
Negotiations on the 2014-2020 MFF

Negotiations on the 2028-2034 MFF

Discussions on the next multiannual financial framework have already started, with formal negotiations scheduled for late 2025. Through a series of analysis and events, we aim to inform this process and shed light on the complexities of the negotiations.

'Connecting the dots' initiative

At ECDPM, we have consistently argued that external action is not an add-on but a strategic necessity. Europe cannot afford to treat its internal and external priorities separately. That's why in October 2025, we launched a new initiative.

Through our ‘Connecting the dots’ initiative, we aim to bridge the communities that shape the MFF – spanning competitiveness, defence and international partnerships. Starting this autumn, we will bring together policymakers, practitioners and experts in closed-door and public dialogues to explore how Europe can better align its internal priorities with its global ambitions.

By fostering dialogue across policy communities, we hope to support a more integrated and strategic EU budget. We also invite policymakers, experts and partners interested in these themes to share feedback and join us in this effort to connect the dots.

If you would like to know more, share insights or partner with us, please get in touch with Alexei Jones or Mariella Di Ciommo.