Von der Leyen's Proposed Budget Overhaul: Implications for EU Power Shift

Von der Leyen's Proposed Budget Overhaul: Implications for EU Power Shift

Von Der Leyen's Proposed Budget Could Boost Brussels' Power

Poland's Piotr Serafin Likely to Take Over EU Commissioner for Budget

While Poland's Piotr Serafin is likely to assume the role of EU commissioner for budget on December 1, the president of the European Commission, Ursula von der Leyen, is already planning his most crucial task: the draft EU budget for 2028-34. A document viewed by Polish media outlet Rzeczpospolita reveals that von der Leyen, a German, intends to overhaul regional policy across the EU, which could significantly impact Poland.

Proposed Changes to Regional Policy

Under von der Leyen's proposed changes, the funds currently allocated to regions and largely managed by them would instead be given to the governments of the member states. These governments would then distribute the funds as they see fit, providing more centralization and control. This shift would likely benefit Brussels, which is looking to expand its control through a top-down approach.

Reduction in Operational Programs

Von der Leyen is proposing a reduction in operational programs from the current 530, including 398 related to cohesion policy, to 27 national operational programs. Each program would encompass all expenditures previously included in cohesion policy and agricultural policy, such as subsidies for farmers. The programs would be divided into sectors like transport, energy, agriculture, or internal affairs and migration. This approach aims to simplify processes and increase flexibility. Von der Leyen also plans to introduce an annual review of the multiannual budget to further enhance flexibility.

Concerns About Elimination of Regional Policy

Experts who spoke to Rzeczpospolita unofficially express concerns that this proposal could lead to the elimination of regional policy, which von der Leyen appears to dislike. This move could result in more control over how funding is spent in rural areas, which often lean more conservative.

Implications of the End of EU Regional Policy

The end of EU regional policy could be dangerous as it may allow the liberal elite in Brussels to manipulate the distribution of EU funds to reward party allies. For instance, if a central government differs politically from a local government, Brussels could cut funding to a country if it disagrees with its policies. Conversely, if a left-liberal government carries out such actions, Brussels could turn a blind eye and allow funds to continue flowing.

Von der Leyen's Revolution a Problem for Poland

Von der Leyen's proposed changes have raised concerns among local authorities in Poland, who fear increased centralization. Hanna Zdanowska, mayor of Łódź and member of the European Committee of the Regions, stressed the need for quick, easy, and flexible access to funds at the levels where they occur. She warned that the centralization or nationalization of cohesion policy could become a dangerous trap during a global political crisis.

Reactions from Other EU Countries

While Poland may be concerned, some EU countries may welcome such a reform. A diplomat from one of the net-contributor countries expressed approval of the proposed changes, noting that they would limit Serafin's scope of action.

Increased Control for Von der Leyen

Von der Leyen's new plan would give her direct supervision over the draft budget, significantly increasing her power. The plan also includes the creation of a steering committee, which would include Serafin and two other individuals.

Opposition to the Plan

Von der Leyen's plan may face opposition from several member states with a strong regional voice, such as Poland, Germany, Romania, or Belgium. Many MEPs may also contest the plan, demanding commitments from the commissioners-designate as early as November.

Bottom Line

Ursula von der Leyen's proposed changes to the EU budget could significantly shift power towards Brussels, potentially eliminating regional policy and increasing centralization. While some member states may welcome these changes, others, like Poland, express concern over the potential implications. What are your thoughts on von der Leyen's proposed changes? Share this article with your friends and discuss its potential impact. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.

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