EU Economics

‘Brexit will rip a hole into EU budget’ More German states terrified of funding cuts

GERMAN politicians are demanding to know how Brexit will impact on their budgets amid fears of heavy cuts when Britain’s contributions to the European Union come to an end.

Delegates from the state of Mecklenburg-Western Pomerania (MWP) are in Brussels for a series of talks and cash is high on the agenda.MWP Social Democrat spokesman Thomas Krüger said: “We delegates want to hear where cuts will have to be made in future, and what possible reductions in the structural aid could mean for the north-east.”

Mr Kruger said Brexit would “rip a hole of around €10billion (£9.2bn) into the EU budget” and that a total of €28billion (£26bn) had been reserved for structural support in the German states until 2021.

Thomas KrügerGETTY

German politician Thomas Krüger wants answers on the EU budget after Brexit

Thomas Krüger

Mr Kruger said the subject of the “multi-annual financial framework” will be discussed with Jens Geier, the chairman of the Committee on Budgets.The MWP delegation follows other key German states wanting to know where they will stand financially once the UK stops pouring cash into the bloc.

Brandenburg finance minister Christian Gorke said the state must not be disadvantaged by the future budget savings by Brussels.

The German state surrounds the capital of Berlin and depends on EU funds.

Thomas KrügerGETTY

Thomas Krüger fears budget cuts in Mecklenburg-Western Pomerania

Mr Gorke said: “As a land area we are dependent on funds from Brussels.”About half of the state of Brandenburg’s area is used for agriculture and roughly another third is covered by forests.

Every year, Brussels contributes around £304million in direct payments to Brandenburg farmers and around £276m to the allocation of structural funds.

Mr Gorke said: “Challenges for Brandenburg will not be smaller.”

Bodo Ramelow, prime minister of Thuringlia, a federal state in central Germany with two million residents, has also called for more support.

Thuringia leader Mr Ramelow, meanwhile, will travel to Brussels next week over fears the state will drop out of EU funding for weaker regions after 2020 because of improved economic performance.Britain is a major contributor to the EU along with Germany, France and the Netherlands and other countries might have to cough up more cash to make up for the shortfall after Brexit.

This week Brussels insisted the UK would have to pay double contributions to the EU when it quits the bloc.

An EU diplomat said they will demand budget payment linked to a transitional deal separately to the divorces payout.

Brussels is already demanding a bumper Brexit bill payout from the Britain, expected to be up to £90billion (£82bn), which it says is required to cover budget commitments the UK has already signed up to.

Leave a Reply

Help put the World to rights and leave a Comment

Notify of
Jane Davies
Jane Davies

Yes….love watching the do do hit the fan!

Powered by: Wordpress
%d bloggers like this: