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Euronews
16-07-2025
- Business
- Euronews
Hungary hit by proposed rule of law conditions in next EU budget
New rule of law conditions for payments in the next budget cycle proposed on Wednesday by European Commission President Ursula von der Leyen could impact Hungary and threaten to cut off more funding channels from Brussels, according to draft rules seen by Euronews. "The rule of law must be respected unconditionally, and this is binding on all the bases of the EU budget. But with the next multiannual financial framework we will go further," said von der Leyen. "In the National Regional Partnership Plans, we are making the rule of law and fundamental rights a condition for investment and a focus for reform. This will be about smart conditionality," she added. Von der Leyen also said that EU money will be spent responsibly, with very strong safeguards, clear conditionality and appropriate incentives, "because this is in the interest of citizens". The National and Regional Partnership Plans (NRPs) package, which von der Leyen mentioned, is the biggest item in the seven-year budget plan, accounting for almost half of total spending, €865 billion, if the budget figures are adopted per the proposal. The Commission President did not give details on the specific form of the rule of law checks that would be carried out on the programmes under the NRPs. New strict rule of law conditions are coming, according to a document obtained by Euronews However, the draft regulations obtained by Euronews show that a member state will have to comply with EU core values in order to be awarded projects. Here, the EU Charter of Fundamental Rights, Article 2 of the EU Treaty on fundamental rights, is mentioned in the regulations, but it also states that member states must not violate the principle of gender equality. Another new feature of the legislation is that payments will be linked to the annual rule of law report. If these rule of law conditions are not met, the Commission will notify the member state concerned and if there is no change, the Council may suspend payments. The rules spell out the need to promote open, rights-based, democratic and inclusive societies and to strengthen the judiciary, the fight against corruption and media diversity. Transparency would also be improved by publishing a list of final beneficiaries of EU funds in a central database. Also included in the budget proposal is the strong AgoraEU line, which together with ERasmus+ will receive €49 billion. This is intended to support common EU values, democracy, the rule of law, freedom of the press and civil society organisations. Hungary could face a difficult situation in the next budget cycle Hungary is currently the country most criticised in the European Union for issues related to the rule of law. Hungary is also the only country to be subject to Article 7 proceedings in the Council, which could in principle end with the withdrawal of voting rights. Hungary is also the only country to be subject to the Rule of Law Procedure, which has been used to suspend EU funds because of the risk of systemic corruption. The Hungarian government has described these procedures and accusations as acts of political revenge. Of the current running EU budget, Hungary can now essentially only use cohesion and agricultural funds. However, these are due to be merged into a programme called National and Regional Partnership Plans, so that in future these funds could be suspended by Brussels if it deems the rule of law to be inadequate. However, the budget proposal presented now is far from final, as it will have to be agreed with the European Parliament and member states. Moreover, each member state, including Hungary, has a veto on the seven-year budget.
Irish Independent
16-07-2025
- Business
- Irish Independent
EU proposes major cut to farm subsidies
Under the new proposal, CAP funding would fall to €300 billion for the next seven-year period, compared to €387 billion allocated for 2021–2027. When adjusted to real prices, this amounts to an estimated 30% reduction in funding. The CAP will also no longer be a standalone fund. Instead, it will be merged into a single mega-fund alongside cohesion and rural development spending, to be managed at the national level through new National and Regional Partnership Plans. It comes as a draft proposal on the next CAP leaked in recent days also outlines a controversial shake-up of how direct farm payments are distributed, including new caps on large payouts. Under the Commission's blueprint, income support would be capped at €100,000 per year per farmer. Tiered reductions would apply to larger recipients: payments above €20,000 would face a 25% cut, those above €50,000 a 50% cut, and anything over €75,000 would be cut by 75%. The goal is to reallocate support towards smaller farms. Previous efforts to impose caps on farm subsidies have been blocked by member states concerned about their larger farming operations. The proposals are likely to spark resistance from Europe's powerful farming lobby. The influential COPA-COGECA group, of which the Irish Farmers' Association (IFA) is a member, has strongly opposed the merging of CAP's two-pillar structure and warned against the redistribution of direct payments. Ireland, a net contributor to the EU budget since 2013, receives the bulk of its EU receipts through CAP. Under the current CAP Strategic Plan (2023–2027), Ireland receives nearly €2 billion annually to support its farming and agri-food sectors. Minister for Agriculture Martin Heydon recently warned of the economic risks posed by CAP cuts. 'As a country that is now a net contributor to the overall EU budget, there are many things we pay into that we don't get a direct return from,' he said. 'Of the receipts the Exchequer gets back from what we pay into Europe, 75pc comes through the CAP. If CAP is reduced, that hits the overall economy in terms of how much of that return we see.' In 2023, Ireland contributed €3.6 billion to the EU budget. That figure is forecast to rise to almost €4.5 billion by 2027. However, speaking today Minister Heydon said today's publication is just the beginning of a 'protracted process'. ADVERTISEMENT Learn more "Member States will, through the Council of Ministers, begin the process of agreeing a general approach to the Commission's proposals, before engaging in line by line negotiations with the EU Parliament and the EU Commission. "This will take some time, and I fully expect the progression of these proposals to be a significant feature of Ireland's Presidency of the EU Council in the second half of next year.' Broader overhaul of EU spending The CAP reform is part of a wider redesign of the EU's long-term budget. The Commission today unveiled a draft Multiannual Financial Framework (MFF) for 2028–2034 worth nearly €2 trillion — equivalent to 1.26% of the EU's gross national income. President Ursula von der Leyen said the revamped budget would help the EU 'shape its own destiny' in an era of global uncertainty. 'Our new long-term budget will help protect European citizens, strengthen Europe's social model and make our European industry thrive,' she said. 'In a time of geopolitical instability, the budget will allow Europe to shape its own destiny, in line with its vision and ideals.' The Commission stressed that new demands on the EU budget — including defence, migration, energy resilience and industrial competitiveness — require a fundamental overhaul. 'Europe faces an increasing number of challenges... These are not temporary but reflect systemic geopolitical and economic shifts,' the Commission said. One pressing concern is the EU's mounting debt, with repayments of €25–30 billion per year due to begin in 2028. To fund new priorities and ease the burden on national budgets, the Commission proposed five new 'own resources,' including levies on emissions, e-waste, tobacco, and large corporate revenues. Combined, these are expected to raise €58.5 billion per year. Next steps The Commission's draft budget must be agreed unanimously by member states, following approval from the European Parliament. Several proposals, including new revenue streams, require ratification by national parliaments.
Euractiv
03-07-2025
- Politics
- Euractiv
Von der Leyen's centralisation will kill the European project
This year marks the 75th anniversary of the Schuman declaration: "Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity." Those words still resonate today for those working to make the European Union project a beacon of hope, trust, and confidence in a better future. As social democrats, we believe that this vision is at stake. The new Multiannual Financial Framework (MFF), expected in two weeks, will determine whether the European Union remains a project of unity, a project that brings together and closer all the different parts of our continent, a project built on multi-level governance, subsidiarity and partnership—or whether it drifts toward centralisation and top-down control, ultimately alienating the Union from its people and territories. The MFF is not just a budget. It is the blueprint of Europe's political ambition. This is why, as leaders of the progressive groups in the two European institutions that represent the people – the European Parliament and the European Committee of the Regions –we have communicated to the President of the European Commission Ursula von der Leyen our deep concerns over the governance of the next MFF. This is not merely a technical exercise, it is about the very essence of our European Union project. The way we will govern the EU's long-term budget speaks volume about the kind of Union we want to be. Whether regions get the funding they need, whether workers are supported, whether no one is left behind - all of this depends on how the EU chooses to design and govern its long-term budget. Simplification and flexibility are welcome, but they must not lead to further recentralisation or renationalisation of European policies. We will not accept any change to the successful multilevel governance management of EU structural funds. While the language has evolved since the internal documents leaked in October last year, from a "Single National Plan" to "National and Regional Partnership Plans", improved semantics do not reduce the risks. If regions lose their role, Europe loses its uniqueness and the reason why this project has remained strong. In the upcoming long-term budget, the role of regions in managing future cohesion policy and rural development funds remains unclear. If future regulations strip sub-national authorities of their ability to manage regional programs under shared management, this jeopardizes the place-based approach in the cohesion policy and the future common agricultural policy that is essential to their success. We understand the need of flexibility and simplification. However, we firmly believe that they must not lead to further recentralisation or renationalisation of European policies. It is also crucial that these changes are paired with predictability for managing authorities and beneficiaries to preserve the added value of cohesion policy, which is intrinsically linked to its long-term perspective. For the future cohesion policy, we could support a new common provision regulation that covers all funds under shared management, but regions need to know beforehand how much support they will receive to build their strategies. Pre-allocated funds are essential for the long-term dimension of cohesion policy. If the new National and Regional Partnership Plans are to work, they should include regional or sub-national programmes' chapters, while managing authorities must be empowered to negotiate directly with the European Commission. Their territorial expertise is essential to designing effective, place-based policies. Also, the reforms associated with these programs should be directly tied to investment made at local and regional level to enhance their effectiveness. We must learn from the failures of the recentralisation of European policies. When local and regional authorities are ignored, investment becomes blind to territorial realities and people's concrete needs. Rather than portraying single national plans per member state and payment against reforms as the model to follow, we should be honest about its shortcomings and build something better: European policies that are built for people's needs, wherever they live. The post-2027 budget is not just another cycle; it is Europe's moment of truth. In an era of polycrises, growing discontent and mistrust, we must show that the European Union can listen, evolve, and deliver. We remain firm in our commitment to a European Union that is shaped by the people and for the people, that brings people and places together, not just in words but in action. That was the spirit of the Schuman Declaration. That must be the spirit of Europe's future. Luca Menesini is the President of the Party of the European Socialists Group in the European Committee of the Regions, and Iratxe García Pérez is the President of the S&D Group in the European Parliament.
