EU budget: Will Germany alone manage Britain’s gap?

Press conference by Jean-Claude Juncker, President of the EC, and Günther Oettinger, Member of the EC
Date: 14/02/2018. Location: Brussels – EC/Berlaymont. © European Union , 2018 Source: EC -Audiovisual Service. Photo: Lukasz Kobus

The EU budget will be the main topic of the EU summit which will be held in Brussels on Friday. The leaders of the 27 member states have to deal with the annual gap that UK will leave after Brexit occurs ensuring that the priorities set for the Union will be adequately funded.

According to the European Commission, the EU budget will face a hole of about 12-15 billion euros per year and Germany as the biggest EU economy is most likely to increase its contribution after the establishment of the grand coalition government.

However, many EU countries such as the Netherlands, Austria, Sweden and Denmark have expressed their opposition to provide additional financial aid to the long-term EU budget which could cause crucial and severe impact to the sustainability of various projects.

The EU budget hole and its consequences

Brexit is about to create another headache to the EU leaders who are struggling to find out new cash to bring to the bloc in order to close the budget shortage. The 27 EU countries have to provide additional funds while Germany should pay 3-3.5 billion euros more from 2021 till 2027 as the budget Commissioner stated. More specifically, Günther H. Oettinger mentioned last Friday that: “With 3 or 3.5 billion euros [3.76-4.4 billion dollars] more from Germany, we could close the gap left by Brexit and finance additional measures. That would be about a 10 cents per day more increase per head of population”. Furthemore, Mr. Oettinger said that it should be achieved without any delays.  His exact words were:  “We must not repeat the unfortunate experience of 2013 when the current EU budget was agreed with considerable delay. If such a delay were to happen again, more than 100,000 EU-funded projects – in key areas like business support, energy efficiency, health care, education and social inclusion – would not be able to start on time, and hundreds of thousands of young people would not be able to benefit from an Erasmus+ exchange in 2021”.

The EU budget should be modified adequately in order to be able to use all funds efficiently. The EC has been providing options in order to be able to connect the goals of the long-term budget with the way they can be funded effectively. It is critical to evaluate all goals and set priorities in order to make them reality as it is possible that the Old Continent will not to be able to finance all projects.

How much more will Germany contribute?

Germany is the biggest contributor to the EU. In 2016, the country paid 12.9 billion euros more into the EU budget than received back in EU funding. Angela Merkel’s conservatives and the Social Democrats (SPD) have admitted that more money is needed to cover the hole of the 2021-2027 EU budget. But this challenge will be dealt by the new coalition government and it remains to be seen whether and how much more they will decide to contribute.

Angela Merkel said that the need to finance EU defense and migration projects has created difficulties to the EU countries to cover the gap that Britain will leave. What is more, the German Chancellor stated last Monday that “not all countries can pay more” after having met and discussed the issue with the Prime Minister of Luxembourg and the Netherlands.

EU budget seems doomed

According to the German daily newspaper Sueddeutsche Zeitung, the Dutch government has mentioned two days ago that will not pay anything more to the EU. Particularly, it was reported that:  “The Netherlands cannot accept increasing its gross contribution to the EU budget. A smaller EU means a smaller EU budget. In addition, new priorities need to be funded from the savings of existing programmes.”

However, unless more net contributors such as France, Italy, the Netherlands, Sweden start providing additional financial aid to the EU, it will be very difficult to maintain the budget to before Brexit levels. The EC has to put its final budget proposal till May while at the same time listening to all EU stakeholders and attempting together with countries such as Germany to convince more countries to put more money on the table.

All in all, even if Germany increases its financial aid, it is highly unlikely that the rest of the EU countries will show similar stance. Thus, the fact that the next EU long-term budget will probably be short compared to the last one is worrying as it will have serious impact mainly on countries which are not able to finance projects on their own.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN launches drive to highlight environmental cost of staying fashionable

How supporting climate action on a local level can transform the world

We had the hottest June ever this year – this is what happened around the world

The financial world upside-down: debt failure closer

Juncker Investment Plan for Europe welcomed by European Youth Forum

Gender parity can boost economic growth. Here’s how

MWC 2016 LIVE: Orange targets VoLTE and Voice over Wi-Fi; strikes Google partnership

EU budget: Commission proposes most ambitious Research and Innovation programme yet

4 innovation hotspots in the Arab world

Take action on air pollution to save lives, and the planet, urges UN chief

Why Sweden’s cashless society is no longer a utopia

This is how music festivals are tackling plastic waste

Tuesday’s Daily Brief: Venezuela-Colombia baby breakthrough, Italy piles on rescue boat pressure, States must combat hate, Kashmir rights latest and a musical plea to combat CAR hunger

Syrian Constitutional Committee a ‘sign of hope’: UN envoy tells Security Council

Microplastics have been found in Rocky Mountain rainwater

‘No justification’ for attacks against civilians, UN envoy says on mounting cross-border violence in Gaza

European Commission welcomes the positive assessment about how it has managed the EU budget

More than 90 per cent of Africa migrants would make perilous Europe journey again, despite the risks

How India is harnessing technology to lead the Fourth Industrial Revolution

Girls groomed for suicide missions fight back against the extremists of Lake Chad

These 5 foods are under threat from climate change

Rule of law in Hungary: Parliament should ask Council to act, say committee MEPs

Welcome to the age of the platform nation

Africa-Europe Alliance: Denmark provides €10 million for sustainable development under the EU External Investment Plan

‘Repeated attacks’ could close down key hospital in eastern Libya, says WHO

Brexit: political groups discuss options for an orderly withdrawal

UN condemns Syrian ‘war on children’ as up to 30 reportedly killed in clashes

This new solar technology can be printed or woven into fabric

Hostilities in Syria’s southwest, mean cuts in vital aid across Jordanian border: Senior UN official

My twin from Guangzhou

FROM THE FIELD: 10,000 Indonesia quake survivors to receive UN tents

How to help companies become global defenders of LGBTI rights

World ‘not yet on track’ to ensure children a better future: UN rights chief

Alarming level of reprisals against activists, human rights defenders, and victims – new UN report

EU budget: the Common Agricultural Policy beyond 2020

How revealing the cost of coal makes us all better off

Global aid needed for healthcare

Only one in five countries has a healthcare strategy to deal with climate change

The European Commission to stop Buffering

Large parts of the world are growing more fragile. Here are 5 steps to reverse course

Mine ban agreement ‘has saved countless lives’, but ‘accelerated efforts’ needed to end scourge for good: Guterres

Here are 4 of the most politically charged World Cup games ever played

Fed and ECB prepare a new party for the financial sharks

This is why Dutch teenagers are among the happiest in the world

Paid paternity leave should be the norm in the US

Overcoming the paralysis of trust management across a fractured IT landscape

The Peoples are missing from EU’s monetary union

“A global threat lies ahead worsened after the EU’s green light to the Bayer-Monsanto merger”, a Sting Exclusive by the President of Slow Food

Create conditions for ‘harmony between humankind and nature’, UN chief says on sidelines of G20 in Japan

How banking with blockchain can stamp out corruption and increase financial inclusion

5 things you need to know about water

“As German Chancellor I want to be able to cope with the merger of the real and digital economy”, Angela Merkel from Switzerland; the Sting reports live from World Economic Forum 2015 in Davos

Four things Turkey did for business in the G20

Millennials (and Gen X) – Here are the steps you should take to secure your financial future

Impacting society with digital ingenuity – World Summit Award proclaiming the top 8 worldwide

“Leaked” TTIP document breaks post 8th negotiations round silence and opens door to critics

Zhua Zhou: Choosing The Future

“Be aware where you put your I Agree signature on and something else”; now Facebook by default opts you in an unseen private data bazar

Japanese law professor elected new judge at the International Court of Justice

This team of Saudi women designed an award-winning app to make the Hajj safer

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s