Deputy Minister Marilena Raouna secures core sector agreements at the General Affairs Council, paving a clear track toward a final 2026 Multiannual Financial Framework deal.

The Core Agreements

Deputy Minister for European Affairs Marilena Raouna described the partial general approaches reached on the three key files of the future Multiannual Financial Framework (MFF) as “a major achievement, not just of the Cyprus Presidency, but for the European Union”.

“We have worked intensively with strong focus, transparency and inclusiveness on all of these files over the past months, and the agreements that have been reached today are a vital stepping stone to enable us to progress towards the goal of reaching a timely agreement on the MFF by the end of 2026,” Raouna said.

Referring to the revised negotiating box and the agreements on the National and Regional Partnership Plans (NRPP), the European Competitiveness Fund (ECF) and Global Europe, she said: “All of this put together represents a package, and thanks to this, the pieces of the puzzle are starting to fall into place.”

The main achievement of Tuesday’s General Affairs Council was the agreement on partial general approaches on the three key regulations at the core of the future MFF: the National and Regional Partnership Plans (NRPP) Regulation, the European Competitiveness Fund (ECF), and Global Europe. Deputy Minister for European Affairs Marilena Raouna described the outcome as “a major achievement, not just of the Cyprus Presidency. It is a major achievement for the European Union.”

“We have worked intensively with strong focus, transparency and inclusiveness on all of these files over the past months, and the agreements that have been reached today are a vital stepping stone to enable us to progress towards the goal of reaching a timely agreement on the MFF by the end of 2026,” Raouna said. She stressed that the three sectoral files, together with the revised negotiating box (Nego Box) presented last week with the first concrete figures, should be viewed as “a package”.

“All of this put together represents a package, and thanks to this, the pieces of the puzzle are starting to fall into place,” she said. Raouna reiterated the Cyprus Presidency’s proposal for a moderate 2% reduction in the negotiating box compared with the European Commission’s initial proposal, describing it as a compromise reflecting the different positions within the Council. “This compromise represents all voices in the Council, as we have heard strong voices calling for a more ambitious budget and at the same time very strong voices calling for significant cuts,” she said.

She explained that reductions were applied across all headings while maintaining the allocation balance between different areas of spending. “We did so while maintaining our ambition. And at the heart of our approach is modernization,” Raouna underlined.

Next Phase of Negotiation

The Deputy Minister also stressed that the agreement did not mark the end of the negotiations. “We are not at the end of the road,” she said. “But what we have done is take a decisive step that takes us to the next phase towards our common objective of reaching a timely agreement by the end of 2026.” According to Raouna, the European Council later this week will provide political guidance on the future MFF, building on the work carried out by the Cyprus Presidency and following the presentation of the negotiating box.

Asked whether negotiations had meaningfully advanced compared with last week’s presentation of the Nego Box, Raouna said she was “absolutely sure” that progress had been made. “Of course there are disagreements. This is not new. It was the case since the very beginning when we assumed our presidency,” she said.

She added that the difference now was that “we have for the first time a negotiating box that has figures and we have the partial general approaches, and that takes us to the next stage.”

Review for Rule of Law

The General Affairs Council also reviewed developments concerning the rule of law situation in Hungary, within the framework of the ongoing Article 7 procedure, following the formation of the new Hungarian government.

European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection Michael McGrath said the Commission welcomed Hungary’s commitment to restoring the rule of law but stressed that there would be no shortcuts. “We will not take any shortcuts in this process. We will work hand in hand to address all of the issues for the good of Hungary, its people, and of the European Union,” McGrath said.

He pointed to several recent developments, including the end of the state of emergency on 13 May, steps concerning independent media and civil society organisations, reforms to strengthen the anti-corruption framework, and Hungary’s intention to join the European Public Prosecutor’s Office (EPPO). McGrath said the Commission would continue to monitor progress in the coming weeks and months.

Regarding Hungary’s position on the EU Migration and Asylum Pact, he clarified that member states are not obliged to implement relocations, as the pact provides for a flexible solidarity mechanism, including different forms of support.

European Democracy Shield

The Council also held an exchange of views on the European Democracy Shield and the European Centre for Democratic Resilience, with participation from candidate and potential candidate countries. “Strengthening democratic resilience has been a key political priority of our Presidency,” Raouna said.

“Defense of democracy does not stop at the borders of the European Union. It requires cooperation, it requires partnership and shared commitment with neighbours and partners,” she added.

She also highlighted progress achieved during the Cyprus Presidency on enlargement, including the holding of three Intergovernmental Conferences on the same day with Ukraine, Moldova and Montenegro.

Concluding her final General Affairs Council press conference, Raouna reflected on the achievements of the Cyprus Presidency under the motto “A more autonomous Union, open to the world”.

She highlighted progress on the MFF, support for Ukraine through the €90 billion loan and the 20th sanctions package, simplification initiatives, competitiveness measures, migration and security files, including agreement on the Returns Regulation and approval of 18 national defence investment plans under the SAFE regulation. “From the very outset, we acted as honest brokers,” Raouna said. “We have worked consistently with transparency, with perseverance, with a clear focus on results.”

“Cyprus may be a small member state, but it is a small member state with a big European soul,” she said.

McGrath praised the work of the Cyprus Presidency, saying it had taken place “at a critical juncture for the European Union” and had been delivered “to a very high standard”.

The Cyprus Presidency will hand over to Ireland on 1 July 2026, beginning the new trio Presidency with Lithuania and Greece.

Source: CNA(ΚΥΠΕ)