Athens’ Strategic Demands in the EU’s Multiannual Financial Framework Negotiations (2028-2034)
The negotiation for the European Union’s Multiannual Financial Framework (MFF) 2028-2034 has reached a critical crossroads, with member states’ positions still significantly divergent. Greece, through diplomatic channels in Brussels, has articulated a clear set of demands across five core axes, reflecting its strategic priorities for the upcoming seven-year budget cycle.
Greece’s primary concern is the safeguarding of what it terms “emblematic” policies: the Common Agricultural Policy (CAP) and Cohesion Policy. Athens has aligned itself with the “friends of cohesion” group, initially comprising 16 and now 17 member states, to counter the risk of Cohesion Policy losing its distinct identity within the new, unified framework of National and Regional Partnership Plans (NRPPs). Furthermore, Greece is actively lobbying for the recognition of insularity as a specific developmental parameter, a strategy explicitly acknowledged by the European Commission for the first time, largely due to Greek pressure.
Fairness and Accessibility in the European Competitiveness Fund
Regarding the European Competitiveness Fund (ECF), Greece does not dispute the “excellence criterion” – the principle of rewarding projects based on their quality rather than national origin. However, Athens challenges the interpretation of certain “frugal” countries, who tend to equate excellence with large enterprises in the north. Greece demands equal access for all states, with a particular emphasis on supporting small and medium-sized enterprises (SMEs) and establishing national contact points to prepare businesses for competitive calls. Notably, fourteen member states, including Greece, Estonia, and other Eastern European countries, have jointly called for strengthening relevant provisions in the ECF regulation.
Addressing Geopolitical Challenges and Budgetary Oversight in ‘Global Europe’
In the “Global Europe” sector, the Greek side is advocating for a substantial enhancement of Council oversight on resource allocation. This demand stems from concerns over insufficient accountability that characterized the relevant Directorate-General’s operations during the current framework. Additionally, Athens stresses that the EU’s southern neighbourhood faces equally severe geopolitical challenges as its eastern front, a position aimed at preventing an unequal distribution of resources favoring Eastern partners.
Overall Budget and the Future of Rebates
Concerning the overall budget size, Greece supports an allocation as close as possible to the Commission’s proposal. For defense funding, it advocates for the consideration of borrowing as an additional tool. Finally, on the abolition of rebates, the Greek position is reportedly under review. While initially negative in principle, Athens is now exploring corrective mechanisms to balance national burdens.
Shifts in Disbursement Mechanisms and Emerging Points of Friction
Beyond disagreements over figures, the new MFF introduces a radical change in the logic of disbursing EU funds, a shift met with caution by many member states. Under the current system, funding is based on reimbursement of expenses. Member states undertake and finance projects, pre-pay contractors, and then submit reimbursement requests to the European Commission, attaching all invoices. The Commission, in turn, verifies the eligibility of each expenditure and reimburses the corresponding amount. If expenditures are deemed ineligible, the burden falls on the national budget.
The new model, inspired by the Recovery and Resilience Facility (RRF), completely overhauls this process. Each member state will develop a single National and Regional Partnership Plan (NRPP), integrating investments and reforms into a common framework. The Commission will pre-approve milestones and targets for each measure. Disbursements will no longer be based on invoices but on the achievement of agreed-upon objectives. Thus, the member state will pay the contractor and submit a declaration of achievement, based on which the Commission will disburse the corresponding amount. A portion of the funding is earmarked for reforms and released only upon their implementation, even if they are not in the same sector as the investment, a fact that raises serious concerns.
This new system, however, generates new tensions. Firstly, institutional tensions arise as countries with constitutional limitations, such as Germany and Belgium, struggle to define a central coordinating body, while countries with strong regional authorities, like Spain, resist the downgrading of their role. Secondly, managerial tensions emerge, as the transition from invoice control to target verification requires a complete reorganization of managing authorities. Thirdly, fiscal tensions are evident, given that in a scenario where a reform is not met, the member state will have already paid the contractor without having received the full amount from the European Union.
Within this context, the main points of friction in the negotiations are:
- The fate of rebates, which the “frugal” states categorically refuse to accept.
- The overall budget size, with requested cuts ranging from -20% (Sweden) to a +10% increase requested by the European Parliament.
- The strengthening of rule of law conditionality, which now affects a broader range of countries beyond Hungary.
- The demand from Eastern European countries for additional funding due to geopolitical pressure.
- Institutional objections to the structure of NRPPs (National and Regional Partnership Plans).
- The issue of repaying NextGenerationEU within the new MFF.
The MFF negotiations are more than just a budgetary exercise; they are a reflection of the evolving priorities and challenges facing the European Union. Greece’s proactive stance underscores its commitment to a framework that is not only fiscally sound but also socially equitable and geographically inclusive. The outcome of these negotiations will significantly shape the future of cohesion, competitiveness, and solidarity within the EU for years to come.
Source: https://www.ertnews.gr/eidiseis/diethni/ti-diekdikei-i-athina-gia-to-polyetes-dimosionomiko-plaisio-2028-2034-kai-ti-allazei-ston-tropo-ektamieysis-ton-eyropaikon-kondylion/
