Posted on May, 05 2025

What is happening and why is it important?

While currently making up just 1% of EU GDP, the EU’s long-term budget is a critical driver of public investments across Europe, including for climate and nature¹.  

In times of various demands on public budgets, the report defines the Parliament’s vision for the next  Multiannual Financial Framework (MFF) ahead of long and tense negotiations that are likely going to stretch over the next two years. Since the MFF traditionally covers a period of seven years, decisions taken now will have an impact on public investments well into the 2030s, and will play a critical role in whether the EU is able to meet its global commitments on climate and biodiversity for decades to come. 

What is WWF’s view on the Parliament’s position?

The report rightly emphasises that to address the worsening climate and biodiversity crisis, a bigger budget than ever before will be required - but it then fails to push for higher spending targets for climate and biodiversity in the next MFF. 

With large public investment gaps looming and national budgets severely constrained, maintaining the status quo is not sufficient. However, without putting concrete and ambitious demands on the table, the Parliament’s vision will be too weak to hold up in the negotiations ahead. 

On the positive side, MEPs call for an increase in support for climate and biodiversity spending under the LIFE programme, which has been the cornerstone for implementing environmental legislation in the EU over the past three decades, and it is key to maintain it as a strengthened and standalone programme. The Parliament is therefore correct in opposing the merging of well-functioning instruments into one Competitiveness “Mega-Fund”. 

WWF also welcomes the critical stance the Parliament is taking on the Commission’s idea to replace the majority of programmes with a single investment and reform plan per Member State. Any changes to the governance structure need to continue to respect the role of regional and local authorities, social partners and civil society organisations. At the same time, a stronger alignment of the EU budget with shared principles and key strategic frameworks for climate and nature provides a real chance to create a more policy-driven budget.  

Furthermore, Parliamentarians sent a clear signal that any increase in spending on new priorities, such as security and defence, cannot come at the expense of climate and environmental spending. WWF also welcomes the call on the Commission to finally phase out all environmentally harmful subsidies from the next MFF and to prioritise nature-based solutions for recovery from ever-increasing natural disasters. A recent WWF report found that Member states continue to channel billions every year from the EU budget into subsidies that destroy biodiversity. Up to 60% of current Common Agricultural Policy spending is harming nature, totalling €32.1 billion annually. In times of limited fiscal space, redirecting these subsidies could easily close the financing gap for nature. 

¹  Eighth report on economic, social and territorial cohesion, p. xviii.