EU leaders to clash over money as Brexit blows hole in budget

By Administrator_India

Capital Sands

European Union leaders will clash this week over the EU’s 2021-2027 budget as Britain’s exit leaves a 75 billion euro (62.7 billion pounds) hole in the bloc’s finances just as it faces costly challenges such as becoming carbon neutral by 2050.

The budget is the most tangible expression of key areas on which the EU members must focus over the next seven years and their willingness to stump up.

For the coming seven-year cycle, the starting point for talks is 1.074% of the bloc’s gross national income (GNI), or 1.09 trillion euros. By contrast, EU national budgets claw in 47% of annual output (GDP) on average.

Still, disputes over hundredths of percentage points have kept EU and government officials busy for the last two years and many diplomats remain sceptical that a deal will be reached on Thursday and Friday, when leaders meet in Brussels.

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