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- Working Paper (5)
Weiterentwicklung der WWU
(2015)
After four days of intense negotiations, EU leaders have finally reached an agreement on the EU´s long-term EU budget and post-Covid recovery fund. The final compromise leaves mixed feelings. It truly constitutes a historically ambitious package which almost doubles EU spending for 2021-2024 with money raised on the financial markets. Internal solidarity and economic recovery are key pre-conditions for wielding power externally and being resilient to external influence. The contrast between the initial lack of intra-European solidarity and China’s so-called “mask diplomacy” underlined by targeted disinformation illustrates this point. At the same time, we saw a traditional pattern in the European Council’s budgetary negotiations: the compromise has been reached by largely preserving spending pre-allocated to Member States – e.g. agriculture and cohesion spending, the new facility providing support to national recovery and resilience plans - and by drastically cutting key EU programmes financing EU-level public goods and thus delivering added value for all – in areas such as research and innovation, mobility, development aid or internal and external security.
This note assesses possible consequences of Brexit for the EU budget and the Common Agricultural Policy. It discusses the importance of the ‘Brexitbill’ and the loss of the British net contribution. Furthermore, it describes how the EU budget and spending on the Common Agricultural Policy can be adjusted to the new situation and estimates how the different options would affect EU Member States and their net balances.