The paper examines the future of the multiannual financial framework (MFF) of the European Union after 2027, with a particular focus on the implications for the Republic of Croatia. The current budgetary framework for 2021-2027 was marked by the introduction of the Next Generation EU (NGEU) instrument, financed by joint borrowing to mitigate the consequences of the COVID-19 crisis and strengthen economic resilience. Future budgetary challenges include the need to secure funds to start repaying the NGEU debt, growing demands in the areas of defence, migration, and the green transition, and the need to reform the EU’s own resources system to increase the EU’s budgetary autonomy. Announced changes to the future budget include simplifying the structure by consolidating programmes, increasing flexibility, and focusing more on results. The introduction of new revenue sources, such as the Carbon Border Adjustment Mechanism (CBAM) and the EU budget’s share of the revenues from the sale of emission allowances, is essential for the sustainability of the EU budget.
Author: Jakša Puljiz, Head of Department for European Policies, Institute for Development and International Relations, Zagreb, Croatia. Lea Stanić, The Hague University of Applied Sciences
This article is available on the IRMO website.
