The European Commission outlines plans for future EU budgets

Due to new challenges, including Brexit, the European Union wants to rethink how to organize future budgets. The European Commission outlined several scenarios on how it can be done. “The withdrawal of the United Kingdom will signify the loss of an important partner and contributor to the financing of EU policies and programmes,” the EC acknowledged in its Reflection Paper on the Future of EU Finances. According to the EU Budget Commissioner Günther Oettinger without the UK contribution, the EU budgets will be smaller by16 percent, or €10-12 billion annually. “In the future, migration management, internal and external security, external border control, the fight against terrorism and defence will need to be budgeted alongside continuing investment to support stability and sustainable development in our partner countries,” it said. The Commission suggested also cutting funds for the EU states, which do not abide by EU rules. While not mentioning any names, the only EU member which the Commission has launched procedures against is Poland, over its changes to the country's rule of law. “Respect for the rule of law is important for European citizens, but also for the business initiative, innovation and investment, which will flourish most where the legal and institutional framework adheres fully to the common values of the Union. There is hence a clear relationship between the rule of law and an efficient implementation of the private and public investments supported by the EU budget,” the Commission said. Poland's Deputy Foreign Minister Konrad Szymański, said that Warsaw will not accept any proposals that would “discriminate against our country's and our region's development interests.” He added however that Poland is ready to discuss the EU budgets future, as changes are necessary, and he expects a “difficult compromise.” Overall, the EC document outlines five possible scenarios for a post-Brexit EU: keeping calm and carrying on; doing less together; allowing some member states to contribute more; an entire radical redesign; and doing much more together. For all the options except doing less together, new revenue streams are called for.  The current financial framework expires in 2020.