‘Frugal four’ dig their heels in over EU’s planned post-Brexit budget increase
FOUR EU member states are joining forces to campaign against increases to the EU budget and want austerity measures put in place to help the bloc absorb the financial impact of Brexit.
European Commission President Jean-Claude Juncker's plans have left the
The concern stems from the fact that, even though the bloc will be reduced to 27 member states when Britain quits next year, proposals would see the financial commitment imposed on each country rise from 1.03 to 1.11 percent of economic output.
This would amount to billions of euros over the course of the six-year budget.
The Commission, and President Jean-Claude Juncker, is seeking to justify the increase by pointing out that it is needed to plug a £12.3billion Brexit budget gap, especially given that it is planning to invest more money in areas such as border protection.
Dutch PM Mark Rutte said the proposals leave Netherlands "paying too high a share of the bill"
Austrian Federal Chancellor Sebastian Kurz, is unconvinced by the logic behind the idea.
He said: "We must take the exit of the British as an opportunity to also get leaner structures."
He has the support of Austrian finance minister Hartwig Löger, who has presented a two-year budget for Austria, taking into account the savings idea.
Their concerns were echoed in a statement issued by Dutch PM Mark Rutte, in which he said: “This proposal is not an acceptable outcome.
Magdalena Andersson called the proposals "unreasonable"
A smaller EU as a result of Brexit should also mean a smaller budget
“The Netherlands sees the Commission’s proposal as leaving the Netherlands paying too high a share of the bill. This also affects other countries.
"A smaller EU as a result of Brexit should also mean a smaller budget. That entails making clearer choices and spending less.
“Under the proposal, the costs of funding the budget are not shared fairly.
“Brexit is already set to hit the Netherlands’ economy hard.
The European Commission’s proposal for the #MFF is not an acceptable outcome for NL. A smaller EU means a smaller budget. That calls for spending cuts and ambitious modernisation. What’s more, the burden of funding the budget is not shared fairly. > https://t.co/R6QGkHY0pp
— Mark Rutte (@MinPres) May 2, 2018
“This MFF proposal imposes a disproportionately high bill on top of that.
“The Commission recognises that the countries that bear the heaviest burden deserve compensation.
“But it only offers a temporary solution in the form of rebates that are phased out over time.
“This is not solution for the underlying problem of the unfair distribution of costs.
Sebastian Kurz fights for sovereignty during visit to Germany
“The Netherlands therefore rejects it.”
The two Scandinavian countries are also happy at the budget proposals.
Swedish finance minister Magdalena Andersson has called them “unreasonable”, while Danish PM Lars Locke Rasmussen said last month: “The Danish perspective is that a smaller EU means a smaller budget, the next MMF must reflect the reduced annual capacity of the European Union.”
(Additional reporting by Monika Pallenberg)