Brexit is messing up the EU Budget when the Brexit transition period comes to an end in December 2020.
This week the EU’s 27 heads of state and government gather at a summit in Brussels for tough negotiations. The goal is to reach an agreement on the EU’s long-term budget for 2021-2027.
In 2018 the UK paid £13 billion to the EU budget and only got £4 billion back. So the UK’s ‘net contribution’ was estimated at about £9 billion. As the Brexit transition period ends in December 2020, other EU countries will have to compensate for these lost billions of Pounds, but who is willing to pay?
On Friday last week, EU President Charles Michel presented a new budget proposal to EU countries.
This proposal was heavily criticised by several EU countries. There has been discontent from both rich countries who want to keep down EU spending and poorer countries who want to guard agricultural and regional aid.
The 27 EU leaders were waiting on Friday to receive a new draft budget from EU President Charles Michel. But that meeting has been postponed several times. Instead, Michel has continued with individual conversations and meetings with smaller groups of countries.
Among other things, a meeting was held with Germany, France, the Netherlands, Sweden, Austria and Denmark. The latter four constitute “the frugal four” who want to keep down EU spending.
According to the Financial Times, efforts are now being made to find savings of between EUR 20 and EUR 30 billion in the draft long-term budget for 2021-2027, without touching agricultural and regional aid.
Michel also had a meeting with Spain and Portugal. Two countries that are vigilant about the large regional support they receive from the EU.
The various talks will form the basis for a new proposal on the EU’s long-term budget from the EU President. When and if it will, however, is unclear.
On Friday morning, several EU leaders expressed pessimism about being able to reach an agreement during this summit.