The interim report put forward by the President of the European Council in October 2012 advocates the creation of a budgetary organisation that would have borrowing capacities. The ensuing European budget would finance structural and competitiveness reforms implemented by the Member States to overcome the crisis.
“An integrated budgetary framework to ensure sound fiscal policy making at the national and European levels, encompassing coordination, joint decision-making, greater enforcement and commensurate steps towards common debt issuance. This framework could include also different forms of fiscal solidarity.” Source: HvR June 2012 Report
Multiannual Financial Framework (MFF)
A framework laying down the maximum annual amounts which the European Union may spend in different policy fields over a fixed period of not less than five years.
The purpose of the MFF is to
translate political priorities into figures;
impose budgetary discipline on the EU; and
facilitate the adoption of the annual EU budget.
The future MFF will cover the 2014-2020 period and is currently under negotiation.
Infographic - EU budget explained, 12.2.14