Strengthening the Next EU Budget: A Unified Call for Smarter, Simpler, and More Effective Financing

In a landmark collaboration, Europe’s leading financial institutions—representing National Promotional Banks (NPBIs), Guarantee Institutions, and International Financial Institutions (IFIs)—have joined forces to propose actionable recommendations for the next Multiannual Financial Framework (MFF).

The Presidents of EAPB, AECM, and the European Association of Long-Term Investors (ELTI), supported by Evfin and NEFI, have sent a joint letter to EU institutions, urging reforms to make the EU budget:

✔ More efficient
✔ Smarter in its design
✔ Simpler in execution

Our goal? To maximize the impact of EU funds by scaling up financial instruments—blending public and private capital—while reducing long-term debt burdens.

Key Recommendations for the Next EU Budget:

✅ Scale Up Financial Instruments

• Set minimum thresholds for their use in strategic sectors.
• Blend them with grants where most effective.
• Establish a dedicated State aid framework to accelerate deployment.

✅ Uphold Subsidiarity in Cohesion Policy

• Empower local actors to tailor solutions to regional needs.

✅ Cut Red Tape & Boost SME Access

• Harmonize "Do No Significant Harm" rules and reduce reporting burdens.
• Apply a "Think Small First" principle to ease SME participation.

✅ Strengthen the Open Architecture Model

• Ensure direct access for NPBIs and IFIs to EU financial instruments.
• Leverage local expertise for better-designed solutions.

The EU budget must evolve to meet today’s challenges—especially in supporting SMEs and local authorities, the backbone of Europe’s economy.

Read the full joint letter here