logo
Fourteen member states oppose the Commission's EU budget overhaul

Fourteen member states oppose the Commission's EU budget overhaul

Euronewsa day ago
With the proposal for the next EU budget after 2027 just around the corner, the political landscape is far from calm. The latest sign of unrest: fourteen member states have endorsed a non-paper opposing the European Commission's plans to centralise the management and distribution of EU funds.
'Only a distinct and robust budget and a region-based allocation methodology, reflecting the different development levels of regions, together with a stand-alone Cohesion Policy dedicated legislation, can ensure that the next Multiannual Financial Framework (MFF) will deliver long-term unity, competitiveness and convergence across EU regions,' states the document.
Bulgaria, Czechia, Greece, Spain, Hungary, Italy, Latvia, Lithuania, Poland, Portugal, Romania, Slovenia and Slovakia signed the non-paper on 'Cohesion Policy in the Future MFF,' aiming to secure a separate pot for narrowing the socio-economic gap between the richest and poorest European regions.
The call from more than half of the member states comes in response to a leak about the Commission's plans to create a single funding pot for each EU country (covering around 530 programmes) and to link the receipt of funds to the fulfilment of policy objectives.
The potential centralisation of the management and access to EU money would give greater power to national governments and Brussels, while proving detrimental to regions and other departments within the European Commission.
European Commission president Ursula von der Leyen is expected to present the budget proposal for the next long-term financial period (2028–2034) on July 16 — but criticism from regions, member states, MEPs, and industry representatives continues to mount.
Both Poland and the centre-left Socialists and Democrats (S&D) group in the European Parliament have raised concerns about the Commission's intention to merge dozens of individual funding streams into a single cash pot per member state, as detailed in their respective position papers on the next MFF.
'We will strongly oppose the 'one national plan per member state' approach, as well as the possibility for national plans to be underpinned by a 'payments against reforms' rule,' the Socialists wrote in a letter to von der Leyen sent on Monday.
The Socialists — the second-largest group in the Parliament — also called on the Commission chief to propose a larger and more ambitious long-term budget, exceeding the current 1% of the EU's GDP, which is equivalent to around €1.2 trillion.
Poland's conservative government, meanwhile, emphasized that future reforms should not lead to further centralisation or the merging of funding instruments. 'Regions should remain at the core of cohesion policy,' its position paper, dated 1 July, states.
The EU's Common Agricultural Policy (CAP) and cohesion policy together account for more than two-thirds of the total EU budget — and Poland, which receives the most funding from cohesion policy, insists that their combined share in the MFF should not be less than it is currently.
'One of the priorities of the next MFF should be increasing the importance of economic, social, and territorial cohesion within the EU and striving for convergence,' Poland defends in its position paper. 'Competitiveness and cohesion are the two sides of the same coin,' they conclude.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Global economy braces for Trump's trade war and its consequences
Global economy braces for Trump's trade war and its consequences

LeMonde

time28 minutes ago

  • LeMonde

Global economy braces for Trump's trade war and its consequences

America's trading partners will finally know their fate. After three months of stormy talks, the United States is expected to announce, by July 9, new trade agreements with the world's leading economies. President Donald Trump stated on Tuesday, July 1, that he did not plan to extend discussions. According to Secretary of the Treasury Scott Bessent, negotiations are focusing on 15 to 18 agreements with major partners. Since early April, only two agreements have been signed: one with the United Kingdom and another with Vietnam. A deal was also reached with China to reduce the exorbitant tariffs the two countries had imposed on each other. Tariffs of "30% or 35%" could be imposed on imports from Japan, compared with the 24% rate announced in April, after Trump criticized Tokyo at the end of June for refusing to commit to buying American rice. The European commissioner for trade, Maros Sefcovic, is expected in Washington this week to try to secure an agreement that would reduce US customs barriers in key sectors such as automobiles and steel. After the initial shock of the US president's tariff announcements, it was his many about-faces on trade policy that unsettled investors. This climate of uncertainty prompted companies to defer investments, risking an economic slowdown. Reflecting this loss of confidence, the dollar posted its worst performance in 50 years in the first half of the year. The dollar index, which measures the US currency against a basket of other major currencies, fell 10.8% over the first six months of the year.

Ukraine will do 'anything' to advance EU accession despite Orbán veto
Ukraine will do 'anything' to advance EU accession despite Orbán veto

Euronews

timean hour ago

  • Euronews

Ukraine will do 'anything' to advance EU accession despite Orbán veto

Ukrainian President Volodymyr Zelenskyy said Kyiv will do "anything" to advance EU accession talks. "Nobody can stop Ukraine in this way. It depends on unity. From our side, we'll do anything. We need support from all other leaders," he said, speaking at the opening ceremony of the Danish EU Presidency in Aarhus. Zelenskyy spoke alongside Danish Prime Minister Mette Frederiksen, President of the European Council António Costa and President of the European Commission Ursula von der Leyen. Frederiksen vowed to support Ukraine's accession process to join the European Union. Denmark aims to use its presidency of the EU Council to put "maximum pressure" on Hungary to lift its veto on Ukraine's EU membership negotiations. "Ukraine belongs to the European family and NATO," Frederiksen said, adding that Denmark is thinking about the "best way forward," without sharing additional details. It comes as Russia continues to intensify its attacks on Ukraine, and the United States decided to halt some promised air defence missiles and weapons, which it had already pledged to Ukraine. When asked about the pause in military assistance, Zelenskyy said he will speak with US President Donald Trump soon, but did not go into further detail. The Ukrainian President called on the EU to invest more in Kyiv's defence industry. Frederiksen said she hoped for continued US military support, but vouched to fill any gaps if necessary. Speaking at an earlier press briefing alongside von der Leyen, Frederiksen emphasised a need for a change in mindset. "When we are delivering weapons to Ukraine, instead of thinking it as donations, we have to think of it as a part of rearming ourselves," Frederiksen said. "Because right now it is the army in Ukraine that is protecting Europe," she added. Von der Leyen added that "financial possibilities are in place to directly support Ukraine," urging member states to make use of the Security Action for Europe (SAFE), a €150 billion budget introduced at the end of May that will help support member states that with to invest in defence. "Member states can take this money and either buy military equipment and give it to Ukraine, or they can take this money and invest it in the extremely efficient Ukrainian defence industry," von der Leyen noted.

LVMH and luxury giants undermine EU pushback on US trade threats
LVMH and luxury giants undermine EU pushback on US trade threats

Fashion Network

time2 hours ago

  • Fashion Network

LVMH and luxury giants undermine EU pushback on US trade threats

For LVMH, the stakes are particularly high. Chairman Bernard Arnault has cautioned that failure to reach a trade deal could have serious consequences for France's wine and spirits industry. Urging restraint, Arnault has advocated for a cooperative path forward and even floated the idea of a US–EU free trade zone. Arnault, who has maintained longstanding ties with Trump, has reportedly visited Washington multiple times since the former president's return to the political spotlight. His son, Alexandre Arnault, also met with officials in May in support of trade de-escalation. 'I hope to succeed, with my modest means and my contacts, in convincing Europe to adopt the most constructive attitude possible,' Arnault told French lawmakers in May. Luxury isn't the only sector weighing in. German automakers—including BMW, Mercedes-Benz and Volkswagen—have also proposed their own solutions directly to US officials. Mercedes, for instance, has shifted production of its GLC SUV to Alabama, while other firms have announced expanded US investments as diplomatic signals. These moves, though strategic, have raised concerns in Brussels. EU officials fear that an over-accommodating response could encourage companies to increasingly shift production and investment across the Atlantic, weakening Europe's industrial core. Industry leaders contend that reciprocal tariffs would do more harm than good. While retaliation may appear symbolic, it risks reducing EU access to essential US-made technologies, components, and research ecosystems—particularly in high-growth areas such as fashion innovation, AI, and biotechnology. Meanwhile, industry groups representing French Cognac and Irish whiskey producers have intensified lobbying efforts, warning that retaliatory tariffs would unjustly penalize products unrelated to the core trade dispute. These sectors rely heavily on the US and Chinese markets for exports and have become particularly vulnerable to policy crossfire. The European Commission has outlined proposed tariffs on $112 billion worth of US goods. However, pressure from member states and industry groups may lead to as much as €70 billion worth of items being removed from the final list—significantly diluting the EU's leverage. As a potential compromise, the EU is reportedly open to a universal 10% tariff on many of its exports, while seeking lower rates for key sectors, such as aerospace, pharmaceuticals, semiconductors, and luxury goods. With stakes rising, the next few weeks will be critical. For LVMH and other fashion leaders, the hope is that quiet diplomacy will succeed where confrontation may fail—and that maintaining access to the US market remains central to the EU's trade strategy.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store