EU budget cut, but Poland still to get lions share of new members portion

According to the draft EU finance bill presented on Wednesday by the European Commission, the value of its 2004 budget will drop from 1.04% to 0.99% of Union's GDP, despite the fact that 10 new and relatively poor countries would be accepted next year. In theory, the EC could propose to increase the budget expenditures by EUR 11 billion for next year, as the EU leaders agreed in 1999 that the EU budget can reach up to 1.27% of its GDP. However, Germany which is currently fighting the economic downturn and is financing 25% of the EU budget, demanded limiting the costs. The first EU budget consisting of 25 members would be worth EUR 100.7 billion, which is 3.3% more than for 2003. Out of this sum, 10 new entrants will receive only EUR 5 billion, with more than half of it going to Poland. The new states will also receive EUR 900 million as part of EU special funds and most of this money will be designated for science, improving administration and sealing the Eastern border. (Rzeczpospolita, May 2-4, p. B2) M.M.