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(27 July 2018) - In the next EU budget period, Germany is set to receive around 20% less funding from the EU’s structural funds. Instead, more regions will be entitled to funds.

Bundestag
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The proposed cuts are “painful”, the paper of the Bundestag states. But at the same time there is relief – at least a little – as it could have been worse: all regions are still entitled to funds, even the wealthiest among them.

Moreover: the middle category of the “transitional regions” – which in Germany comprises 31 out of 38 regions – is set to become broader. This leaves the eastern German states with the exception of Leipzig inside this category, and theoretically, they will benefit from higher subsidy rates.

One of the cuts is to co-financing for projects. So far, depending on the level of development of the region, the EU is assuming between 50-85% of the costs incurred in its funding. In the future, the rates are about to be lowered, in less developed regions by even 15%.

“If this subsidy becomes significantly lower, it will be unattractive, especially for small municipal projects, to apply for EU funds,” criticises German MEP Kerstin Westphal (S&D), who sits on the EU’s Regional Committee. (EurActiv)

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