A different kind of financial crisis for the European Union

If you are following what is going on with the European Union, you may have seen the on-going battle to adopt a seven year budget for 2014 to 2020.  The European Commission is proposing €1.033 trillion budget, a four percent increase over the current budget.  Self-interest of 27 member EU countries is more evident in the budget proposal and a decision has been postponed at a recent EU summit meeting.  So, the division between the rich northern countries and the less fortunate south and east continues.

What’s in the proposed EU budget?  The EU budget funds transnational programs, regulations and development policies.  Spending on farms or aids to farms take up 44 percent of the budget while the EU’s more than 65,000 strong staff account for six percent of the budget.

Agriculture programs in Ireland and France benefits more than the United Kingdom and the Germany.  Therefore, those countries that benefit less are asking for reduction in the agriculture budget.  Germany contributes the highest percentage of funds to the EU budget.  The United Kingdom is seeking to freeze the spending at current levels.  The uneasy feeling between France and Germany is also evident in budget talks.