BRUSSELS - The post-Brexit budget of the European Union (EU) is to pose a test for its unity when the bloc is under pressure to draw its blueprint for the next multi-year financial framework after Britain leaves a big hole in it.
It is estimated that Britain, as a net contributor to the EU budget, will after its exit leave a shortfall of more than 12 billion euros (14.6 billion U.S. dollars) per year in the budget. With its current seven-year budget period ending in 2020, the EU’s executive arm European Commission (EC) plans to present the blueprint of the next multi-year budget in May.
However, the pressure facing the EU is not confined to the reduced receipts by Brexit. The bloc has set new goals in areas such as migration, internal and external security, among others, incurring more expenditures. This may result in a much larger financial gap.
EC chief Jean-Claude Juncker on Jan. 8 called on the 27 members states to pay more money into the bloc’s coffers. Juncker said the next EU budget should be more than 1 percent of the bloc’s gross domestic product (GDP).
Juncker also implied there would be less money for some programs. The cohesion policy and the common agricultural policy (CAP) are likely to be the worst hit.
However, it’s easier to be said than done. Either increasing contributions or scrapping projects may make some member states unhappy. (Xinhua)