Budget games real actors play: examining the agreement on CAP and cohesion for MFF 2021–2027

This article applies Actor-centred institutionalism to examine Council negotiations on the issue of national co-financing within the Common Agricultural Policy (CAP) and Cohesion Policy during the 2021–2027 Multiannual Financial Framework. Our analysis shows that negotiations on the CAP fractured existing coalitions. The salience of expenditure led to outcomes that primarily reflected the preferences of individual member states rather than collective positions. By contrast, coalitions remained united during the negotiations on expenditures in Cohesion Policy despite the issue’s high salience. Member states maintained common positions across the main lines of conflict. The analysis also underscores the importance of additional elements in the broader negotiation process. These include supplementary legislation, budget rebates, increased funding, and more flexible allocation rules. Finally, it was found that the European Council and the European Commission played a key mediating role. Their interventions helped secure agreement with key member states across the two central conflict dimensions.