Shaping a European budget fit for climate action and a just transition

Policy Brief

The negotiations for the next EU Multiannual Financial Framework (MFF) – the long-term budget at the centre of EU policy action – will involve difficult discussions in the coming years. With new political priorities arising, such as defence, and the European Commission’s current focus on competitiveness, flexibility and simplification, concerns are growing that the European Green Deal is at risk and that the next MFF will not be fit to tackle climate and just transition challenges. 

Based on discussions and ideas emerging from two territorial just transition stakeholder meetings organised by FEPS, FES Just Climate, CEE Bankwatch and Solidar, a policy brief and progressive policy recommendations for the next MFF were developed.

This policy brief explores five key elements for an EU budget that promotes sustainability, social cohesion and transparent governance:

• A territorial approach to transformation.
• Social conditionalities in the next MFF.
• Environmental and climate conditionalities.
• Multi-level governance, stakeholder inclusion and accountability.
• Funding for accession countries.

The conclusion highlights key principles for the next MFF highlight, among others, the importance of maintaining the place-based approach developed in the just transition process, improving capacity building, prioritising projects that reduce climate, environment and health-related inequalities and that “do significant good”, and meaningfully involving local actors and civil society. Overall, competitiveness, flexibility and simplification should be developed in a way that benefits the people and regions that need the most support, in line with a just transition and the objectives of the European Green Deal and the European Pillar for Social Rights.

Progressive policy recommendations for the next MFF

The 2-page “Progressive policy recommendations for the next MFF” offer a complementary vision for the next MFF in a short and accessible format.