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 skills:

Skills for competitiveness in the EU's next budget cycle

Skills are set to be a major transversal priority under the European Commission's proposed Multi-annual Financial Framework (2028–2034) maintaining competitiveness and social fairness, and shaping the future of Europe and its citizens. In particular, the green and digital transitions increasingly mean that the workforce requires new and updated skills. This has lead to the Commission's recently proposed Council Recommendation on Human Capital in Europe, which calls on Member States to urgently address skills shortages with a focus on strategic sectors for the EU economy.

While most of the fundamentals are changing for both public and private funding hopefuls under the new MFF proposal – from consolidation of funding streams and access points to cross-sectoral priorities and eligibility criteria – skills are one of the areas that will have a guiding thread of continuity bridging from the current programming period into the next, thanks to the Union of Skills, the policy lens through which many initiatives supporting skills are being devised.

Inspired by Mario Draghi's 2025 report on EU Competitiveness, the Union of Skills concept identifies human capital as one of Europe's greatest constraints and opportunity. It calls for improved basic competences, lifelong learning pathways, mobility of workers within the EU, and the attraction of global talent. This vision is complemented by the upcoming Quality Jobs Roadmap, which aims to link skills development with fair working conditions, gender equality, and job transitions.

Launched in March 2025, the Union of Skills seeks to:

• equip people with the skills required for a rapidly changing labour market
• help businesses access qualified workers
• increase labour-market participation among underrepresented groups
• strengthen Europe's ability to attract and retain global talent

These objectives will be realised through coordinated funding, partnerships and reforms at both national and EU levels, supported by the incoming MFF. The Commission, in fact, proposes to channel a significant part of funding through National and Regional Partnership Plans (NRPPs) for investment and reform to deliver on the priorities identified in the Competitiveness Compass and ensure sustained convergence of the economic and social performance of Member States and regions. 

MFF 2028-2034: unlocking Europe's competitiveness and resilience through skills

The proposed 2028-2034 MFF marks a strategic moment not just in what sectors and projects the EU will fund, but also how it funds them, with stronger overall emphasis on people, skills, inclusion, flexibility and strategic alignment. For stakeholders interested in education, training, and workforce development, this is an important moment to better understand:

• how skills fit into the overall funding architecture
• what opportunities will emerge
• how to position for them

The proposed new MFF is all about cross-cutting priorities. Workforce, digitalisation and resilience are embedded across the budget, rather than treated in silos, with the overarching goal of overcoming barriers to European competitiveness. As such, the Union of Skills targets Europe's need to face a growing skills gap, with shortages in digital, technical, and green professions threatening to slow the twin transitions. Addressing this gap requires coordinated investment in reskilling and upskilling across key sectors, ensuring that workers and businesses alike can adapt to new technologies and drive the EU's progress toward the green and digital future. The Commission's proposal sets the MFF volume at almost €2 trillion with a revised architecture featuring fewer instruments, more flexibility and greater alignment between EU and national/regional funding. Below we outline the main instruments and opportunities supporting education and skills development. 

National and Regional Partnership Plans (NRPPs)

Each Member State will develop a single integrated plan aligning reforms and investments across employment, education, and social inclusion. At least 14% of each plan's budget will be dedicated to social objectives, including lifelong learning, apprenticeships, and vocational training. This mechanism will function similarly to the Recovery and Resilience Facility (RRF), tying disbursements to progress on agreed milestones and outcomes. The European Social Fund Plus (ESF+) will be a part of the NRPPs alongside other funds like the European Regional Development Fund (ERDF).

The European Competitiveness Fund (ECF)

A new €425 billion instrument, the ECF brings together four strategic windows: Digital Leadership, Clean Transition, Health and Bioeconomy, and Resilience, Defence and Space. Skills are identified as a horizontal action across all these areas, ensuring that talent development and industrial innovation evolve hand in hand. 

Industries, research consortia, and value-chain actors will be encouraged to participate in projects that combine innovation with workforce development, advancing Europe's technological sovereignty while promoting employability, reskilling and upskilling actions.

Erasmus+

With its budget doubled to €40.8 billion, Erasmus+ will continue to act as the flagship programme for the Union of Skills. The next generation of Erasmus will expand its focus beyond student mobility to include adult learning, reskilling, and cooperation among training institutions and enterprises. The programme's goal is to build the European Education Area and accelerate reforms across Member States, driving quality, inclusion, and cross-border collaboration.

The new EU Facility

A flexible €71.9 billion budget line, the new EU Facility will respond to emerging challenges and priorities, including social innovation, micro-finance, gender equality, and labour mobility. It will support evidence-based policymaking and initiatives linked to the European Pillar of Social Rights, with skills and training among its central objectives

The proposed 2028–2034 EU budget signals a major shift in how Europe views the development of human capital. For workers, learners, and education providers, it represents a decisive push toward acquiring digital skills as key assets for Europe's competitiveness and resilience, particularly in areas such as advanced technologies, artificial intelligence, data and connectivity. At the same time, the green transition is placing growing emphasis on 'green skills': the capabilities needed to support clean energy, decarbonisation, sustainable technologies, and the circular economy. Because the budget links skills policy directly with the twin digital and green transitions, individuals who combine digital expertise with environmental and sustainability awareness are expected to be in particularly high demand.

For businesses and employers, the implications are equally significant. Funding and regulation will increasingly favour enterprises that invest in workforce development aligned with these dual transitions. Companies that integrate training and upskilling programmes into their operations, particularly in digital and green domains, will be better positioned to access EU funding and maintain competitiveness. The adoption of new technologies, as well as evolving procurement and compliance frameworks, will require continuous re-skilling and adaptation across industries.

For Member States and regions, the proposal calls for strategic alignment between national and regional policies. Partnership plans will need to identify clear priorities for skills investment in both digital and green areas, ensuring that education, innovation, and labour-market policies work together. The European Commission envisions more integrated strategies that connect skills development with industrial innovation, sustainability goals, and regional growth.

Why is this important for you - and why now?

For stakeholders engaged in skills and education the time to take action is now. Early positioning in 2025-2027 negotiations is critical to shape priorities and ensure allocations meet your specific needs. National and regional governments are now preparing their Partnership Plans and this is the time to engage in consultations, support draft plans, position in sectoral dialogues and provide best practices. 

The 2028–2034 MFF positions skills as the engine driving Europe's next decade of transformation, enabling industries to innovate, workers to adapt, and societies to thrive in the face of rapid change. By aligning investments in education, employment and competitiveness, the EU aims to build a truly resilient and inclusive Union of Skills. Those who act early, engaging with governments, EU institutions, and alliances, will be best placed to capture the opportunities ahead and shape the continent's future workforce.

The Union of Skills will only succeed through collective effort and engagement. 

Creating visibility, and supporting open dialogue between industry, institutions and civil society actors is essential for the success of the Union of Skills. When employers, workers, education providers, and public authorities cooperate to co-design training programmes that truly reflect labour-market demands, and work together towards mapping emerging skills needs, we can see real impact on the ground. We already see this collaborative approach in action through EU-funded projects, which serve as practical pilots and real-world proof of how joint action can drive effective skills development. These initiatives demonstrate that when stakeholders unite around common goals, skills policies are transformed into concrete opportunities for people.

As the next MFF is being shaped and Europe continues to face increasingly complex challenges, preparation requires both strategic awareness and active engagement. 

First and foremost, we need to stay up to date with the most recent policy and funding initiatives having both short and long-term impact. This means:

• Tracking key EU programmes under negotiation for the next MFF
• Understanding how short-term responses (e.g. crisis instruments, strategic autonomy measures) may influence long-term priorities
• Assessing emerging funding trends in areas such as climate, digital, security, industrial competitiveness, and skills

Secondly, engagement is equally important: we need to maintain constructive dialogue with all relevant stakeholders to ensure they are informed and aligned which helps to build trust and a successful cooperation. This includes:

• Regular dialogue with EU institutions and national authorities
• Ongoing exchanges with sector organisations, networks, and experts
• Building coalitions and fostering partnerships to strengthen influence and impact
• Remaining responsive to stakeholder needs as they evolve

How we do this

Schuman Associates calls on education and training organisations, employers, regional governments, and policymakers to share knowledge, case studies, and best practices on reskilling, upskilling, and lifelong learning; to engage actively with EU institutions ensure that skills and education remain high on the political agenda and consistent funding is allocated throughout 2028-2034.

In recognition of the importance of a unified, cross-sectoral platform to shape skills policy in Europe, Schuman Associates launched the Skills Coalition, a network of 26 organisations encompassing major EU sectoral associations, academic institutions and private-sector actors, to support the creation of a dedicated European Parliament Intergroup: the European Parliament Intergroup on the Future of Education and Skills for a Competitive Europe. In close cooperation with the Lifelong Learning Platform (LLLP) and the European Federation of Education Employers (EFEE), we work to support the policy agenda on these important topics. 

In this context, Schuman Associates is proud to co-chair the Advisory Committee of the Intergroup and work alongside other members to shape the agenda, organise events, track policy developments and provide inputs to Members of Parliament and other stakeholders active on skills and education policies. The Advisory Committee serves as a focal point for best practice exchange, stakeholder engagement and alliance-building across sectors.

We recognise that skills are transversal and impact every sector, from manufacturing to health to digital services: they are not a niche education policy but a strategic lever for competitiveness, innovation and social inclusion. The Skills Coalition therefore plays a dual role: convening expertise across sectors and feeding into policy making. By working with training providers, employers, sector associations and academic institutions, our objective is to ensure that skills policies respond to real labour market needs.

This understanding also comes from our direct experience implementing EU-funded projects with a strong focus on skills development. These include Skills4Retail, Digital4Business, Digital4Security, CloudCamp4SMEs, ReSkill4NetZero, Green Skills for Hydrogen, and EU Code Week, among others. Designed as innovative initiatives to support individuals' upskilling and reskilling, these programmes are developed in close collaboration with industry experts and educational institutions across Europe to equip learners with the essential competencies needed to navigate the evolving employment landscape. 

Next steps

As the next MFF takes shape, Europe has a unique opportunity to maintain skills at the centre of its competitiveness agenda. Turning the Union of Skills from policy to action will require commitment and coordinated engagement from all actors. By contributing expertise, shaping reforms, and investing in talent development today, stakeholders can ensure that the Union of Skills becomes a tangible reality for European citizens and beyond. 

Now is the moment to act, collaborate, and lead in designing the workforce of the future. 

Work with our team to align your skills priorities with EU strategic agendas so you can prepare high-impact partnerships, funding strategies and project concepts ahead of the 2028–2034 programmes. 

Find out more