European Union budget

All EU member states make a financial contribution to the implementation of EU policy. Most of that
money goes to the agricultural sector. However, European funds are also spent on research and
innovation.

Adoption of EU multiannual budget

The Multiannual Financial Framework (MFF) for the EU budget is adopted once every 7 years. It sets out
the maximum sums that the EU can spend each year on various categories of expenditure. It also
contains agreements on how resources in these categories are allocated and how the EU budget is
funded. A new MFF has started in 2014.

EU multiannual budget 2014-2020

On 8 February 2013 the European Council agreed on a new MFF for the EU budget for the period 2014-
2020. The Netherlands succeeded in the negotiations, achieving results in each of its 3 target areas.

The government wanted to see a significant reduction in the budget. The overall expenditure ceiling for
the MFF 2014-2020 (€ 960 billion) is €34 billion lower than the ceiling for the multiannual budget 2007-
2013.

The government wanted to preserve the reduction in its contributions to the EU. It successfully achieved
this aim, securing an average reduction of €1.1 billion.

Finally, compared with the previous budget period, resources are being shifted away from agriculture
and the structural funds to research and innovation. That was another clear goal of the Netherlands.

On 27 June 2013 agreement was reached with the European Parliament on the MFF 2014-2020.