Explainer Annex: What are EU funds and how do they work

Explainer Annex: What are EU funds and how do they work

The budget of the European Union is decided for a period of 7 years (“programming period”), through an interinstitutional agreement called the Multiannual Financial Framework (MFF), which sets out the spending priorities of the EU budget during this time. It gives the maximum amounts (ceilings) for each broad category of expenditures (headings). The negotiations about the next programming period (2021-2027) are currently underway.
Cohesion Policy is the European Union’s strategy to promote and support the ‘overall harmonious development’ of its Member States and regions, by strengthening economic and social cohesion, and reducing economic, social and human rightsbased disparities in the level of development between regions. It is enshrined in the Treaty on the Functioning of the European
Union (Art. 174)

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