MUNICIPAL FINANCIAL FRAMEWORK OF THE EUROPEAN UNION 2014-2020

Abstract

The multiannual financial framework determines the limits for the annual general budgets of the European Union. It determines how much money and how much for different areas of activity the European Union may use each year when it assumes legal obligations over a period of more than five years (usually covering a period of seven years).

The Council of the European Union adopts a regulation on the multiannual financial framework after obtaining consent from the European Parliament. The purpose of the regulation is to facilitate the adoption of the EU's annual budget, translate political priorities into figures within a budget cycle of at least five years, ensure the budgetary discipline of the EU and add predictability to EU finances. The regulation on the multiannual financial framework determines the "upper limits" (annual maximum amounts) for two types of EU spending: appropriations for commitments and payment

appropriations.

The aim of the study in this paper is to examine the current model of the Multi-annual Financial Framework and to determine its advantages and disadvantages in relation to previous models in order to create an advanced basis for the next model of the European Agenda. The research used the following methods of scientific research: document content analysis, modeling methods, statistical method and comparative method.