EU to Discuss Proposal on Long-Term Budget After Getting Done With the Brexit Deal - Forex News by FX Leaders

EU to Discuss Proposal on Long-Term Budget After Getting Done With the Brexit Deal

Posted Friday, October 18, 2019 by
Arslan Butt • 1 min read

Now that the Brexit deal is out of the way, leaders of the European Union are expected to shift their focus to budget planning at the ongoing summit later today. The new budget plan could see EU’s spending going up to an estimated 1.1 trillion euros in 2021-27, as per calculations based on Finland’s proposals.

Finland, which holds EU’s rotating presidency currently, has proposed that the long-term budget should have a financial capacity of 1.03-1.08% of EU’s gross national income (GNI). This would be the first long-term budget plan which excludes Britain’s contribution post Brexit.

Finland’s proposal is likely to be contested by other members of the bloc as it exceeds the 1% cap fixed by Germany. Meanwhile, the European Commission has proposed a long-term budget worth 1.1% of the GNI, while the European Parliament is keen on a a budget accounting for 1.3% of the GNI.

The proposal put forth by Finland aims to reduce subsidies to poorer regions from the current 34% to less than 30% in the coming years while aids to farmers could be brought down from over 35% to just above 30%. The proposal also includes provisions to withhold funding to nations with shortcomings in enforcing the rule of law, including curbs on judiciary and media independence.

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