European Commission’s proposal for the new EU Multi-Annual Financial Framework (MFF) 2021-2027 could mean a significant cut of European funds for Eastern European states.
According to Austrian financial group Erste, the impact for Romania can be of 1.2 percent of Gross Domestic Product (GDP), ziare.com informs.
European Commissioner for Budget Günther Oettinger said the cuts would amount to a 5 percent chop to the EU’s Common Agricultural Policy, which currently makes up nearly 40 percent of the bloc’s budget, and a 7 percent reduction in regional funds, which overall now account for one-third of spending by the EU.
Such a reduction would mean, on the basis of the current division of budgets, a decrease in the amounts, as a percentage of GDP, of 0.3 percent for Slovenia, 0.5 percent for the Czech Republic and Croatia, 0.8 percent for Hungary and 1.2 percent for Romania, according to Erste estimates.
In total, the funds for Central and Eastern Europe (CEE) could fall by 14-34 percent, according to Austrian analysts. Currently, about 40 percent of the European funds are for the CEE zone.
The budget draft for 2021-2027, introduced in early May, reflects several changes, including the departure of the United Kingdom. The country currently belongs to the biggest contributors to the EU budget.
The budget is expected to amount to EUR 1.135 billion, which matches 1.11 percent of the GDP in the 27-member club. After taking inflation into account, this amount is comparable with the one allocated for 2014-2020.