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Thursday April 18, 2024

Pay more or get less after Brexit, EU leaders told at summit

By AFP
February 24, 2018

BRUSSELS: European Union leaders faced calls at a Brussels summit on Friday to "pay more" to fill a Brexit-sized hole in their budget or accept cuts.

The 27 heads of state or government, minus the British prime minister, were divided on how to deal with a funding gap of up to 15 billion euros a year after Britain leaves next year. "If we want to have new priorities, and we can´t reduce to the right extent old policies, then countries have to pay more," warned European Commission president Jean-Claude Juncker.

The Netherlands, Denmark, Sweden and Austria, which all pay more into the EU than they get out, are strongly opposed to increasing the coming multi-year budget. The current seven-year budget of almost one trillion euros runs out in 2020.

"What we don´t want is the weight of a constant increase in spending pressing down on net contributors," Austrian Chancellor Sebastian Kurz said as he arrived. Dutch Prime Minister Mark Rutte said that "by modernising the budget we can free up money for new priorities" including migration, defence and cybersecurity.

German Chancellor Angela Merkel´s plan to tie regional funding for poorer states to the willingness to take in refugees was particularly divisive. There have also been suggestions that the funding should be made conditional on obeying the rule of law, seen as a shot across the bows to Poland and other Eastern European governments.

European Parliament chief Antonio Tajani backed the plans, saying those who did not show "solidarity" and "do not respect union rules must pay the price for that." Juncker however warned against going too far. "I´m very worried that there is this gap between east and west. I don´t want a new divide in Europe, we have enough of that".

The European Commission, the powerful executive arm of the EU, has called for spending to increase to between 1.1 percent and 1.2 percent of EU countries´ GDP, up from 1.0 percent in the current budget. Brussels has suggested cuts to agricultural funds, which is sure to anger farmers.