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Cohesion Policy in the hot seat

Oct 11, 2019 | News

(11 October 2019) – Several Member States want to lower the rate at which a budget can be allocated to the EU for the period 2021-2027. Cohesion Policy aid to regions is at risk.

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Austria, Germany, Sweden, the Netherlands and Denmark have requested that the EU budget should represent only 1% of the gross national income of the 27 Member States (post-Brexit). The 2021-2027 budget proposed by the Commission last May corresponds to 1.11% of the EU-27’s gross national income. 1% would be €1,279 billion less.

This proposal introduces a 10% reduction in Cohesion Policy funding. The Finnish Presidency of the Council would even aim for a budget of 1.06% of the EU-27’s gross national income. This would involve reductions of €60-70 billion, which would put additional pressure on Cohesion Policy (around €25 billion).

In France, the State has just taken over a large part of CAP subsidies that were distributed by the Regions. “It’s absolutely regrettable,” said Younous Omarjee, MEP, and Isabelle Boudineau, Vice-President of New Aquitaine. “The state has just renationalized two-thirds of the EAFRD. While the regions had saved the LEADER programme, because the government no longer had the engineering to do so. It is a historical step backwards and a measure of mistrust towards local authorities. This government is renationalizing EU policies.” (Ouest-France)

More information (FR)