EUROPE - Ursula von der Leyen will face a challenge from her own country shortly after she replaces Jean-Claude Juncker as European Commission President, as Germany plans to thwart her budget plans. The president-in-waiting will face difficulties from day one as her own German government is refusing to back the European Commission’s long-term budget proposals.
Berlin looks set to thwart the EU’s plans and blames Brexit as a major factor in its decision. The tough negotiation stance is in a bid to limit overall spending, as the UK’s departure from the bloc will leave a significant gap in funds. Berlin will back spending no higher than one percent of the EU’s Gross National Income (GNI) – a measure of the wealth created within the EU coupled with monies from overseas sources such as foreign investment and economic development aid.
The index is used as the basis for calculating national contributions to the budget of the EU. The EU had hoped to secure a budget of around 1.11 percent of GNI, a massive €1.22 trillion, but the German government looks set to cap this at one percent. Brexit has been blamed as a major factor in the German government’s position, according to a document seen by respected politics website Politico.