From 1988 to 2013 - 'Financial Perspectives'
The first multiannual financial framework (originally named 'multiannual financial perspective') was established in 1988 at the initiative of the European Commission ('Delors I package' of February 1987) and covered a period of five years (1988–1992).
The 'financial perspectives' were introduced with the aim of providing a stable budgetary framework for the implementation of the economic and social objectives of the Single European Act.in the years up to 1992.
Image: Visit of Aníbal Cavaco Silva, Portuguese Prime Minister, to the CEC - Source: European Commission.
Source: European Commission.
The European Council of February 1988 laid down the principles for tighter budgetary discipline in order to produce a better balance between the different categories of Community budget expenditure and to control their growth.
Two documents, with different legal status, implemented these principles:
- Council Decision 88/377/EEC of 24 June 1988 concerning budgetary discipline
- the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure, signed by the European Parliament, the Council and the Commission on 29 June 1988.
The new discipline arrangements covered all categories of expenditure and were binding on all the institutions associated in their operation: the Interinstitutional Agreement made budgetary discipline the shared responsibility of the three institutions party to it, without encroaching on the powers vested in them by the Treaties.
Source: European Commission.
Subject to the technical adjustment and revision procedures provided for in the Interinstitutional Agreement, the European Parliament, the Council and the Commission accepted that the financial amounts set in this perspective were to be regarded as binding expenditure ceilings for the Community.
The practice of enshrining the 'financial perspectives' in an interinstitutional agreement, which included in its annex a table with the expenditure ceilings by heading - was continued with the:
- financial perspectives 1993-1999 (Interinstitutional Agreement of 29 October 1993 on budgetary discipline and improvement of the budgetary procedure)
- financial perspectives 2000-2006 (Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure)
- financial perspectives 2007-2013 (Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure)
From 2014 onwards - Multiannual Financial Framework
Source: European Commission.
With the entry into force on 1 December 2009 of the Lisbon Treaty, the multiannual financial framework, which was previously set out in Interinstitutional Agreements, was incorporated into the Union’s primary law (Article 312 TFEU).
The Multiannual Financial Framework covers a period of at least five years and is adopted in the form of a Council Regulation in accordance with a special legislative procedure (the Council adopts the MFF regulation acting unanimously after obtaining the consent of the European Parliament).
The first, covering the period 2014-2020, together with an interinstitutional agreement between the European Parliament, the Council and the European Commission on budgetary discipline, cooperation in budgetary matters and sound financial management.