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EU plans radical budget overhaul handing more power to capitals

Digest opened free editor

Brussels prepares a fundamental reform for the upcoming euro trillion budget in the European Union, to replace dozens of programs with integrated funds that will deliver more spending power to capitals.

The plan, which was identified in a paper seen by the Financial Times, calls for a more “ambitious” budget in “size and design” to meet the increasing spending requirements to pay the defensive debts.

While the paper stops a total proposal for the multiple budget, which begins in 2028, European Commission The case makes the largest renewal ever of how to distribute money, saying, “The current situation is not an option.”

It indicates that the need to pay the costs of the COVID bonds alone will reach 30 billion euros annually, or 20 percent of the annual spending of the mass-an unprecedented financial burden that would force the European Union to rethink the total contributions.

It is possible that any attempt to increase the total budget will meet severe resistance from the largest net contributors to the budget such as Germany and the Netherlands.

Instead of framing negotiations on long -term groups, the committee indicated that it wants to revolutionize the budget structure, and gathered more than 50 “rigid” spending programs to three main boxes that provide more “flexibility” to deal with unexpected challenges.

the European Union budget It is traditionally funded by national contributions that reach about 1 percent of the total national income of the European Union. Almost a third of agricultural benefits is allocated, another third of the least-sized areas-through the policy of “cohesion”-where the rest covers everything else from external aid to the salaries of European Union employees.

Under the simplified budget, the committee will agree to “a plan for each country with major reforms and investments”, including regional funds and agricultural benefits. In fact, this would give national governments more space in decisive projects, including some of them were traditionally agreed at the local authority level with Brussels.

The second “European Competitiveness Fund” would enhance investment in the main sectors and joint projects, while the “renewed” foreign policy fund will be “more compatible with our strategic interests.”

These two European Union funds can devote a greater share of the budget for border defense projects, which were not priority in the previous European Union budgets.

The inaugural stadium comes from the committee before an official budget legislative proposal – officially known as the multi -year financial framework – scheduled this summer. All 27 countries need to agree on it, a process that took more than two years of negotiations to another MFF.

The committee argues that the current distribution mechanisms are very bureaucratic and slow in approval of projects. While the European Union is currently in the middle of the road during its seven -year budget cycle, only 6.4 percent of regional funds have been spent so far.

Negotiating with the accessories of spending with member states will simplify the process, and allow the committee to monitor how projects are achieved from comprehensive reform goals. But this may leave local and regional authorities the least opinion of using money. The paper says that any policy needs “designed in partnership with the national, regional and local authorities.”

A spokesman for the committee refused to comment on the proposals, which is scheduled to be revealed on Wednesday.

“We want a budget that corresponds to better with the new priorities of the Union, which is the competitiveness and the European Union’s defense,” said Sigfred Morian, a conservative member of the European Parliament in charge of budget negotiations.

Additional reports by Andy Points and Henry Voy

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2025-02-11 05:00:00

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