Germany's contribution to the EU budget will increase

  •   16/06/2020 - 10h50
  •   DEHOUI Lionel

On the basis of the Brussels proposals, Germany is likely to see an increase in its annual contribution to the EU budget. The surplus could be as much as €13 billion a year, almost 42% more than the usual contribution.

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Germany's contribution to the EU budget will increase

A figure justified by the European post-pandemic recovery plan

According to Die Welt, Brussels has reportedly made a proposal that all EU member states will now pay 1.075% of their GDP to the European budget annually for the next seven years.

In this regard, the various Heads of State and Government of the European Union will attend a meeting by videoconference this Friday. The aim of this virtual meeting will be to discuss the EU budget to be planned for 2021-2027. These include the Multiannual Financial Framework (MFF), followed by the European Post-Pandemic Recovery Plan.

The European Post-Pandemic Recovery Plan is a plan that was presented on 27 May by the EU Commission. It consists of releasing 750 billion euros to revive the EU economy after the devastation caused by the coronavirus and to support post-Covid Europe. However, the German government has refrained from commenting on this information.

 

Germany worries after its calculations

Only a few days before the meeting of the European Heads of State and Government, the German Foreign Office calculated its share for the contribution to the European budget. Thus, it turned out that the amount to be paid could increase by about EUR 13 billion per year. A situation that is likely to be a source of concern for the German public since its already heavy debt is increasing further.

The surplus that the country will have to pay is estimated at €13 billion, compared to only €31 billion in the past. By next year, the amount to be paid out would be around 44 billion euros, an increase of almost 42%.

 

The contribution to the EU budget: what is it all about?

The contribution to the European budget is a financial contribution from each EU Member State according to its capacity, to enable the organisation to implement its policies and programmes. It is considered to be the Union's most important financial instrument.

Indeed, the budget of the European Union has been drawn up since 1999 and is implemented exclusively in euros. The amount that each member has to pay is defined according to its means and is calculated in an equitable way. In total, the sum that makes up the budget represents about 1% of all the wealth available to the EU. Before the budget is allocated to a project, the bloc is reassured that the motive is much more profitable for the union than for the member states.

Moreover, the amount to be paid by each country depends on its gross domestic product. The larger its economy, the greater its contribution will be. This is the case of Germany, whose contribution enables the financing of EU programmes and projects.