The multiannual financial framework (MFF) is the EU’s long-term budget, which complements national budgets of Member States by funding initiatives and policies with a European added value. The EU budget is set for a period of at least five years and is an expression of political priorities. For instance, the MFF covers the Union’s commitments to Research and Innovation, Environment and Climate Action, and Social Cohesion.

EVPA follows the ins and outs of the EU budget, and the EU regulations overall. Through the Union’s support to, inter alia, the European Pillar of Social Rights, social enterprises, quality employment, etc, new funding opportunities regularly open up for investors for impact.

The current EU budget (MFF 2014-2020) allows the EU to invest around €1 trillion over the period 2014 – 2020. The signature programmes which are relevant to the Venture Philanthropy and Social Investment sector, are

• The European Fund for Strategic Investments (EFSI), which aims to address market gaps and mobilise private investments by financing strategic investments in key areas such as infrastructure, education, risk finance for SMEs, et cetera.
• The EU Programme for Employment and Social Innovation (EaSI), a funding instrument with the aim of combatting social exclusion and poverty, as well as improving working conditions.
• The European Social Fund (ESF), the EU’s primary instrument for promoting employment and social inclusion by investing in the European citizens and their skills.

Negotiations for the next EU long-term budget (MFF 2021-2027) were kicked off by the European Commission’s proposal in May 2018. It targets a budget of roughly €1.3 trillion across a broad range of different policy priorities for the EU.

The next MFF aims, among other things, to strengthen the social dimension of the Union. In the context of the social impact space, the following two EU programmes are of highest importance:

• InvestEU is the EU programme to support investment and access to finance in the EU and will provide an EU budgetary guarantee with the aim of mobilising €650 billion in additional investment.

• The European Social Fund Plus (ESF+) is the new budget that aims to contribute to a more social Europe and wants to make the European Pillar of Social Rights a reality on the ground.