The EU Council and EU Parliament's negotiating teams on Tuesday reached an agreement on the Multiannual Financial Framework (MFF) for the period from 2021 to 2027, Germany's presidency of the EU has said.

“A deal for Europe – Council & EP negotiators reach political agreement on the EU budget & recovery package,” the German presidency said on Twitter.

The tweet further notes that the main elements targetted reinforcement of European programmes while respecting EU Council conclusions from July.

On July 21 the European Council adopted conclusions on the recovery plan and multiannual financial framework for 2021 – 2027 with a value of €1,074 billion and a €750 million temporary recovery instrument, Next Generation EU, €390 billion of which will be in grants and €360 billion in loans, which is a total value of €1,824.3 billion.

In order for this political agreement to be implemented it is necessary to conduct legislative procedures, which is the responsibility of the Council and the European Parliament.

A huge step was made last week regarding the MFF and recovery plan, when negotiators reached a provisional agreement on a new general regime of conditionality to protect the Union budget based on the principle of the rule of law. That was one of the main obstacles to reaching an agreement on the seven-year EU budget.