MFF Watch 2028–2034

As the EU institutions and Member States dive into negotiations over the next long-term budget - the EU 2028–2034 Multi-annual Financial Framework (MFF) - we are kicking off a special series exploring what's at stake.

From healthcare and digital to defence, green innovation and skills, we'll unpack how the new funding cycle will shape Europe's priorities and open fresh opportunities for innovators, industry and the public sector.

Our goal: to help our clients and our extended community understand where EU money will flow, position early and engage in shaping the next chapter of EU's investment agenda.

This week, we dive into defence:

What does the new MFF mean for Europe's security and defence industry, dual-use technology developers and strategic investors?

A new era for European security and defence

Europe is entering a new phase of defence cooperation and technological innovation, spurred by the realities of today's security environment and the lessons of recent conflicts. The war in Ukraine and growing geopolitical tensions have underscored the need for Europe to "spend more, better and together" on defence. The EU's next MFF will mark a turning point, establishing a long-term, structured investment framework for defence and security across the Union.

For the first time, EU defence funding will benefit from consistent, dedicated multi-year envelopes, providing stable and predictable resources for strategic projects. The aim is not only to strengthen Europe's defence capabilities, but also to consolidate its industrial and technological base, laying the groundwork for a European Defence Union.

A simplified and strategic funding architecture

The European Commission's July 2025 proposals introduce a streamlined funding architecture focused on a handful of strategic instruments. These include the new European Competitiveness Fund (ECF), the Connecting Europe Facility (CEF), Horizon Europe FP10, and the National and Regional Partnership Plans (NRPPs).

Under this structure, defence and security are no longer scattered across multiple programmes. Instead, they form one of the core policy pillars of the EU's investment strategy, integrating research, development, production, and deployment.

The European Competitiveness Fund: the flagship for security and defence

The ECF is the major novelty of the next MFF. Its Resilience, Security, Defence Industry and Space policy window commands over half of the total programme budget, earmarking approximately €131 billion for defence.

Through the ECF, the EU will:

• Fund European Defence Projects of Common Interest and cross-border industrial partnerships
  
• Support collaborative R&D, prototyping, testing, and qualification of new technologies
  
• Reinforce defence production capacities and establish "ever-warm" facilities for critical manufacturing
  
• Promote dual-use technologies and civil–military synergies
  
• Foster space–defence collaboration to enhance Europe's strategic autonomy
  

Targeted eligibility criteria will favour European-made products, components and suppliers, strengthening the EU's defence industrial sovereignty and creating lead markets for made-in-Europe solutions.

National and Regional Partnership Plans: security and defence funding at country level

At national level, the new NRPPs will channel EU funds through a single, flexible programming instrument aligned with five overarching objectives, one of which is defence capabilities and security. This will allow Member States to:

• Invest in military mobility, cybersecurity, and critical infrastructure
  
• Support dual-use projects and preparedness capacities
  
• Reinforce industrial bases and national defence ecosystems
  

These plans will bridge EU strategic priorities with country-specific needs, ensuring that local actors, SMEs, and governments can participate in the defence value chain.

Connecting Europe Facility: enabling military mobility

Why is this important for you - and why now?

How we can help

We have supported clients through 37 years of MFF cycles - since the first formal MFF in 1988 - helping them navigate complexity, secure funding, and shape the EU's investment agenda. From strategy design and stakeholder engagement to project positioning and partnership building, our experts provide end-to-end support in Brussels and across Member States.

Whether you are a dual-use technology developer, a defence SME, or a prime contractor, we can help you understand how to access and leverage the new funding opportunities under the 2028–2034 MFF.

Let's work together to shape your future in Europe's security and defence investment landscape.

Key takeaways

Security and defence are a top strategic priority in the next MFF, supported by unprecedented EU funding.

The European Competitiveness Fund will be the central vehicle for defence and space.

NRPPs and CEF will ensure national-level and infrastructure investments align with EU goals.

Early positioning and EU engagement will be critical for market access and influence.