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EU Regional Aid for Eastern Europe to Shrink in New Budget

  • European Commission seeks to shift part of funds to the south
  • Poland, Hungary oppose cuts in EU373 billion cohesion policy
Updated on

The European Union’s regulatory arm proposed a new method for distributing regional aid under its first post-Brexit budget, shifting part of the funds from eastern Europe to countries in the south of the continent that face unemployment and migration challenges.

As part of the 2021-2027 fiscal plan totaling 1.28 trillion euros ($1.5 trillion), the European Commission seeks to overhaul its 373 billion-euro cohesion policy as part of efforts to plug a 10 billion-euro annual hole in the EU coffers that will result from the U.K.’s scheduled withdrawal from the bloc next year.