Regional aid

The European Union’s cohesion policy – aid for poor regions that is supposed to bring them nearer the EU average – is to be cut from €355 billion under the current MFF (2007-13) to €309bn in the latest proposal from Herman Van Rompuy, the president of the European Council. (The Commission had proposed €339bn.)

In a bid to rein in spending, the Commission proposed that regional aid should be capped at 2.5% of a country’s economic output, primarily on account of two big cohesion beneficiaries – Poland and Romania, which joined the EU in 2004 and 2007, respectively. According to some calculations, Poland alone might have needed an additional €30bn-€40bn compared with the current MFF under the methodology that is currently used to set the level of aid.

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