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The present multiannual financial framework (MFF) 2014-2020 of the European Union (EU) is the first long-term budgetary framework for the Union under the Treaty of Lisbon. The MFF has been called a political power game among the institutions of the Union; the paper looks at the financial results of the changing financial powers under the new Treaty. The two guiding questions are: (1) How does the MFF, or more general a fiscal rule, look like?; and (2) Does the MFF really constrain the EU budget? The paper states the results of the constitutional/political power game inside the new framework. In general it can be said that flexibility is the key to understanding the outcome of the negotiations: increased flexibility of the existing budget and new flexible off-budget expenses. Accounting, disguised as flexibility measures, has become a form of transparent budget gimmickry.

The Multiannual Financial Framework of the European Union: A Political Power Game