Her huge concept is to steer funding away from how EU cash has historically been spent ― on agriculture and regional growth ― towards new priorities reminiscent of protection and innovation.
Wednesday will hearth the beginning gun on over two years of fraught negotiations between governments and the European Parliament. The EU’s 27 governments must unanimously approve the plan.
Will probably be a troublesome promote for von der Leyen. Alongside Germany’s reservations, France, the second-biggest financial system, can also be unwilling to extend its contributions, squeezed as it’s by a hovering deficit and ballooning debt. On Tuesday, French Prime Minister François Bayrou introduced a nationwide funds to avoid wasting €43.8 billion ― and instantly got here underneath menace of being toppled by parliament.
The Fee is ready to allocate €946 billion to “Europe’s social mannequin and high quality of life,” which could embody regional coverage and customary agricultural coverage which at the moment make up two thirds of the EU funds. If the figures are confirmed, farmers’ subsidies and funds to poorer areas ― which have been the bread and butter of the EU funds for many years ― will make up a considerably decrease share of complete spending within the subsequent years to come back.
If the figures seen by POLITICO are confirmed, the Fee can also be set to allocate €522 billion to “competitiveness, prosperity and safety,” €190 billion to “International Europe,” which incorporates growth help and help to neighboring nations, and €107 billion to a pot referred to as “administration” which covers the salaries of EU workers.
A devoted off-budget fund for Ukraine will probably be price €88 billion over the following seven years.
Individually, the Fee will suggest three new taxes focusing on electrical waste, tobacco merchandise and corporations within the EU with a turnover exceeding €50 million to repay its post-Covid widespread debt. Repayments are anticipated to value from €25 to €30 billion annually ranging from 2028.
Camille Gijs contributed to this report.
