The European Union executive has proposed a two-trillion-euro long-term budget focused on tackling overseas competition and Russian aggression. However, Germany, the bloc’s largest member, has swiftly rejected the plan, calling it “unable to accept” due to concerns over national budgets.
Farmers unions have also expressed opposition to proposed reforms to agriculture subsidies. The EU plans to bolster Europe’s security and increase competitiveness against a backdrop of soaring trade tensions with the US, while paying off debts from the Covid-19 pandemic.
The budget allocates 131 billion euros for defense and space under a broad “competitiveness” tag. It also earmarks up to 100 billion euros for Ukraine’s reconstruction. However, Germany says the budget is too large, while EU lawmakers argue it does not leave sufficient funds for priorities such as climate adaptation and agriculture subsidies.
The future of the Common Agricultural Policy (CAP) subsidies, which make up a significant share of the budget, is now headed for a fight. Farmers have warned against cuts to their funding, with some 300 billion euros set to remain under the commission’s plans. The EU has debts due from the Covid-19 pandemic, estimated to cost 25-30 billion euros per year from 2028.
Negotiations between the European Parliament and member states are expected to be fraught over the next two years. Germany’s rejection of the budget highlights concerns among some countries about contributing more to the common pot, while EU lawmakers argue that the proposed plan does not meet their demands for sufficient funding.
Source: https://www.kyivpost.com/post/56439