European public administration: Heading 7 of the 2021-2027 MFF

In May 2018, the European Commission published its initial proposal for the EU's long-term budget for 2021-2027, the multiannual financial framework (MFF), followed by a subsequent proposal in May 2020. The 2021-2027 MFF was adopted in December 2020 and has been in force since 1 January 2021. It is structured around seven headings, with a total budget of €1 074.3 billion in 2018 prices. The greater part of these funds – over 93 % – is dedicated to a variety of EU programmes, and is invested primarily in Member States, and partially in partner countries as external spending. The administrative expenses of the EU account for approximately 6.8 % of the 2021-2027 MFF. In the preceding MFF, for the 2014-2020 period, administration came under Heading 5, while in the 2021-2027 MFF, administrative costs are to be funded under Heading 7, entitled 'European public administration', which includes a sub-heading for the administrative expenditure of the institutions. While in other policy areas there is more significant restructuring, the heading that covers EU administrative costs is comparable to that of the previous MFF in size and structure. In its initial proposals for Heading 7, the Commission maintained that to ensure the smooth functioning of the Union the EU budget must finance its administration adequately, particularly in view of the fact that the EU civil service underwent two successive and substantial reforms within a short time frame, in 2004 and 2014. The Commission has aimed to ensure that the EU can rely on a highly qualified administrative service that is balanced in terms of geography and gender. While the European Parliament backed the Commission's 2018 proposal, in its conclusions from the July 2020 summit, the Council proposed a €2 billion cut to allocations for this heading, which was eventually adopted. The total budget is €73 102 million (2018 prices) for the period covered by the next MFF. This is an update of a briefing from January 2020.