EU leaders to clash over post-Brexit budget

By Jan Strupczewski

 

Belgian Prime Minister Charles Michel sits between French President Emmanuel Macron and Germany's Chancellor Angela Merkel during a dinner with European Union leaders at Val Duchesse castle in Brussels, Belgium, February 22, 2018. Chancellerie du Premier ministre/Belgian Prime Minister Office/Handout via REUTERS

 

BRUSSELS (Reuters) - European Union leaders will lay down the first markers on Friday on the size and aims of the bloc's next long-term budget, as a large hole in its finances begins to take shape with next year's departure of one of its main net contributors.

 

All EU states except Britain are to say in a summit debate whether they agree to increase the 2021-2027 budget to pay for new common policies on security, defence and migration, at a time when Brexit will slash revenues to the common pot by 10-12 billion euros ($12.3-14.8 billion) a year.

 

"We need a new start for Europe," German Chancellor Angela Merkel said on Thursday, adding the budget discussion could lead to some major changes.

 

"The debate about the future financial framework is also a chance to look at the finances of the EU as a whole," she said.

 

The European Commission wants the budget to increase to 1.1-1.2 percent of EU GDP from 1.0 percent now and has proposed covering the gap left by Brexit with a mix of spending cuts and new sources of revenue.

 

With the 27 states divided going into the debate, officials do not expect any agreement on that tentative proposal on Friday.

 

It is likely get a sympathetic ear in Germany, already the biggest net contributor to the EU budget and prepared to pay even more.

 

Italy and France, the next biggest net contributors, are also ready to increase payments, albeit with certain conditions.

 

"France will say: we're ready to pay more for Europe, but on a number of conditions," an adviser to President Emmanuel Macron said on Wednesday.

 

France wants to link EU payments to poorer eastern European countries to their respecting the rule of law. EU officials have opened a formal procedure against Poland to check if it is observing its own constitution, and EU officials have serious doubts about respect for democratic values in Hungary and Romania as well.

 

But the Netherlands, Sweden, Denmark and Austria, which also put more in to the EU budget than they take out, have ruled out any higher payments, saying a smaller EU after Brexit implied a smaller budget.

 

Belgium, Finland and Luxembourg, also net contributors, lean towards that view.

 

The leaders will also discuss if they would agree to give the European Parliament a bigger voice in choosing the next head of the EU's executive, the European Commission, and what to do with assembly seats vacated by British deputies.

 

Parliament wants EU leaders to choose the next Commission president from among candidates put forward by the political groupings in the assembly, building on a process that gave the current Commision head Jean-Claude Juncker his job.

 

But officials said leaders were likely to reject that call, because the EU treaty obliges them only to "take into account" the results of European elections, but not to have their choice limited to a parliamentary short-list

 

The leaders are likely, however, to agree to a proposal to cut the number of parliamentary seats to 705 from 751 after the 73 British deputies leave.

 

(Reporting By Jan Strupczewski, editing by John Stonestreet)

 

-- © Copyright Reuters 2018-02-23

EU has lost it's sheen a long time ago. Inviting all those countries which only serve to become parasitical, and bringing down the value of the EU. Perhaps it's time to dismantle this ideology, as it's clearly not working anymore.

2 hours ago, the guest said:

EU has lost it's sheen a long time ago. Inviting all those countries which only serve to become parasitical, and bringing down the value of the EU. Perhaps it's time to dismantle this ideology, as it's clearly not working anymore.

It never really did work did it? we gave they took .

As a trading bloc it was a good idea. Everything after that was bad for the larger countries.

17 minutes ago, DoctorG said:

As a trading bloc it was a good idea. Everything after that was bad for the larger countries.

Actually, as a trading bloc it was failing. Which is why the EU was created.

Fois gras this year, liver sausage next?

They should have all just concentrated on getting rich through trade, which was the original idea, instead of all this meddling they now do (mission creep puts it mildly), as half the problems that the block has now wouldn't have come about if the block had concentrated on trade and wealth for all. Losing the British through being inflexible was a mistake and they will figure that out at some point. Brussels should have tossed David Cameron a bone or two to keep them in as he was a good EU liberal poster boy for the block....but all they did was sneer and offer nothing, then a referendum came and the rest is history. No-one to blame but themselves.

Edited February 23, 20188 yr by Sir Dude

33 minutes ago, nauseus said:

Fois gras this year, liver sausage next?

Spam and toast the year after that

The BBC reporter summed it up nicely when he said that the net contributors don't want to pay any more than they do now, and the net recipients don't want to receive any less than they do now.  Something's got to give.

3 hours ago, lincolnshire poacher said:

Spam and toast the year after that

and then gruel and dirty water 

3 minutes ago, dunroaming said:

and then gruel and dirty water 

Bon appetit on the isolated rock.

50 minutes ago, lungbing said:

The BBC reporter summed it up nicely when he said that the net contributors don't want to pay any more than they do now, and the net recipients don't want to receive any less than they do now.  Something's got to give.

Huh?

"It is likely get a sympathetic ear in Germany, already the biggest net contributor to the EU budget and prepared to pay even more.

 

Italy and France, the next biggest net contributors, are also ready to increase payments, albeit with certain conditions."

1 hour ago, lungbing said:

The BBC reporter summed it up nicely

So now the BBC is to be believed?  And I thought all Brexiteers said that the BBC was biased and kept lying. 

 

It's confusing trying to follow the warped logic sometimes.

40 minutes ago, ilostmypassword said:

Huh?

"It is likely get a sympathetic ear in Germany, already the biggest net contributor to the EU budget and prepared to pay even more.

 

Italy and France, the next biggest net contributors, are also ready to increase payments, albeit with certain conditions."

How would you know they are prepared to pay more?. They don't have a Government at the moment so there is no one who can speak authoritatively for them. 

Anecdotally I do business in Germany and the majority of my customers and friends don't want to pay a penny more to shore up Greece Portugal Italy etc etc.

2 hours ago, lungbing said:

The BBC reporter summed it up nicely when he said that the net contributors don't want to pay any more than they do now, and the net recipients don't want to receive any less than they do now.  Something's got to give.

That fois gras definitely has to go then.....and the crystalware with what gets poured!

 

Junker will be bailing out at the right time - no more free piss. 

Edited February 23, 20188 yr by nauseus