Baltic and German Ministers of Finance discussed in Vilnius the 2028-2034 Multiannual Financial Framework proposed by the EC
At today's meeting in Vilnius, Minister of Finance of Lithuania Rimantas Šadžius, Vice-Chancellor of Germany and Federal Minister of Finance Lars Klingbeil, Minister of Finance of Latvia Arvils Aseradens and Minister of Finance of Estonia Jürgen Ligi discussed recently presented proposal by the European Commission (EC) for the European Union's (EU) 2028-2034 Multiannual Financial Framework (MFF).
On 16 July, the European Commission presented an ambitious proposal for the EU's Multiannual Financial Framework (MFF) amounting to a total of almost EUR 2 trillion, or an average of 1.26% of the EU's Gross National Income (GNI) for the period 2028-2034 (the budget larger by EUR 636 billion as compared to the current 2021-2027 MFF).
Baltic and German Ministers of Finance, during their visit to Lithuania on 28-29 July, exchanged views on this proposal, as well as discussed defence financing challenges and new opportunities for support to Ukraine. The Ministers stressed the need to strengthen European security, to increase the efficiency of defence investment and to reduce industrial fragmentation. It was stressed that the EU consistently demonstrated strong support to Ukraine and must continue to maintain leadership by providing comprehensive assistance to the country defending its freedom. Also, the discussion on enhancing the EU's competitiveness highlighted the importance of initiatives related to the EU Savings and Investments Union and the importance of the initiatives related to the development of capital markets.
Security and defence have become indistinguishably related to today's reality and an urgent need, therefore, Lithuania strongly supports the increased EU funding for defence initiatives and military mobility projects, in particular, at the Eastern border of the EU.
“In the two-year negotiations on the new EU Multiannual Financial Framework, Lithuania will seek special attention to the Eastern border region of the EU, as investments in the resilience of the region bordering the aggressor countries are essential to strengthen the resilience of the EU as a whole. Furthermore, in the negotiations the efforts will be made that funding for the long-term priorities of vital importance for Lithuania - Cohesion policy and the Common Agricultural Policy (CAP) - is not reduced and that convergence is ensured by reducing both development disparities between the Member States and regions and disparities between direct payments to farmers from different Member States”, Minister of Finance R. Šadžius stressed.
According to the Minister, the EC proposal for the EU 2028-2034 Multiannual Financial Framework provides a good basis for the start of negotiations between the Member States, reflecting the priorities of an ambitious EU agenda.
Key features of the EC proposal for the new MFF: more flexibility, so Europe has the capacity to act – and react – fast when circumstances change unexpectedly or when new policy priorities need to be addressed; Simpler, more streamlined and harmonised EU financial programmes (moving from 52 programmes in the current MFF to 16). In addition, the MFF tailored to local needs, for targeted impact where it matters most and ensuring a faster and more flexible support for more economic, social and territorial cohesion across the Union. The MFF focuses on a powerful competitiveness boost, for Europe to secure supply chains, scale-up innovation and lead the global race for clean and smart technology. The 2028-2034 MMF provides for a balanced package of new own resources that ensures adequate revenues for the EU priorities while minimising pressure on national public finances. Also, respect for the rule of law is ensured.
Under the EC’s proposal for the MFF, Lithuania is allocated approximately EUR 14.2 billion (at current prices) for the implementation of the National and Regional Partnership Plan (NRP), where approximately EUR 12.5 billion is earmarked for financing cohesion, agriculture and other traditional areas; approximately EUR 1.2 billion for migration, border protection, security and home affairs policies (of which EUR 450 million for the Special Transit Scheme) and approximately EUR 0.5 billion for the Social Climate Fund. In addition, a separate line of EUR 678 million is foreseen for Lithuania for financing of the decommissioning of the Ignalina nuclear power plant.
The MFF also provides for a separate instrument for Ukraine, EUR 100 billion Fund to Ukraine. Support to Ukraine will be implemented under the geographic pillar of Global Europe and sourced from above the budget ceilings from a special dedicated reserve given the scale and uncertainty of the needs and will be financed over the budgetary ceiling through a dedicated reserve, taking into account the scale of the assistance and the uncertainty of needs. This support will include loans financed via common EU borrowing backed by the headroom of the EU budget. However, Minister of Finance R. Šadžius stressed that the worsening debt sustainability of Ukraine should be taken into account and more grants than loans should be provided to Ukraine.
Two loan instruments are also foreseen outside the MFF: EUR 150 billion Catalyst Europe facility for loans for the implementation of National and Regional Partnership Plans and a new extraordinary crisis response mechanism. EUR 395 billion (0.25 % of the total GNI of the Member States) is foreseen for loans.
Lithuania’s average annual contribution to the EU budget for 2021-2027 is projected to be at around EUR 717 million. Lithuania’s expected funding-contribution ratio for the financial period is positive, with around EUR 3.4 being ‘recovered’ for each euro paid into the EU budget.
Last updated: 11-08-2025
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