Est. 1min 10-03-2003 (updated: 07-11-2012 ) Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram The UK government has announced plans to strip the EU of powers to spend around 30 billion euro annually in aid for the poorest regions. Read more with Euractiv Convention to discuss more powers for EU regionsThe next meeting of the Convention on the EU's future will debate the role and power of regions and local authorities. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters BackgroundThe UK Chancellor Gordon Brown, who presented the proposal for a reform of the European regional policy, believes that the cost of the EU's regional policy will increase by 50 percent and will become unsustainable once the Union grows from 15 to 25 members in 2004. The UK is concerned that its poorest regions would loose billions of regional aid at the expense of 10 new EU members. The British Government argues that decisions on regional spending should be made at a local level. This would allow Britain to repatriate 1.5 billion pounds a year from the EU budget. Under the UK proposal, Spain and Ireland would loose regional aid altogether. Only the poorest parts of Greece and Portugal, and the future east European Member States would be eligible to receive regional aid. Commission officials rejected the plan, describing it as selfish and unrealistic. However, the Netherlands and Germany, both big net contributors to the EU budget, have taken a similar position, arguing that the existing Member States should no longer rely on regional aid from Brussels. The EU will initiate the debate on the 2006-2012 financial perspectives later this year, and the British budget rebate of 2 billion pounds a year may have to be scrapped. The UK now contributes 3.6 billion euro to the EU's annual budget, and receives aid payments worth about 2 billion euro.
