The threat of a split in the European Commission has forced its head, Ursula von der Leyen, to make concessions, promising to allocate more funds to Europe’s poor regions in the 2028 draft budget.
Von der Leyen “made a series of last-minute concessions in an attempt to appease two members of her team who are at opposite ends of the political spectrum,” Romanian socialist Roxana Mînzatu, EC Vice-President for Skills, Education and Culture, said.
Funding for poor regions will be maintained from 2028, which will provide political support to the 27 EU commissioners, anonymous officials said. This decision deviates from von der Leyen’s original plan, which envisaged strengthening the powers of central governments in the management of €400 billion in EU regional funds.
Earlier, Ursula von der Leyen announced the creation of a European fund for the reconstruction of Ukraine. According to the head of the EC, the fund for the reconstruction of Ukraine was created jointly with Italy, Germany, France and the European Investment Bank.
The European Commission is due to present its version of the EU budget for 2028-2034 on July 16.
The size of the new EU budget must take into account the need to repay loans taken out by the European Union during the coronavirus pandemic (€650 billion, €30 billion per year) from 2028 onwards.
These payments alone will require about 20% of the current community budget. In addition, the EU plans to spend €800 billion on a rearmament programme, which will be funded by cuts to the social budget.
