The EU is
planning to shift the centre of gravity in structural funds allocation from the
east to the south of Europe, the Financial Times reported on Monday.
In the
2021-2027 budget period, the main losers in the reallocation of the €350bn
structural funds are expected to be the Visegrad Four: Poland, Slovakia, Czech
Republic and Hungary. The Baltic States may also be affected.
The main
winners will be countries like Greece, Portugal, Italy and Spain.
Overall,
structural funds will be reduced by 5-10% due to Brexit, according to budget
Commissioner Günther Oettinger. Moreover, there will be greater demands for
matching funds.
However,
the key policy shift will be in the formula for the allocation of structural
funds on a per capita GDP basis. According to a leaked European Commission
policy paper, allocation criteria will be broader than population and the new
criteria will be broader and will include criteria such as youth unemployment
and rule of law of compliance.
One of the
key criteria that will negatively affect the allocation of funds for Eastern
Europe will be the numbers of asylum seekers regions host. This will greatly
benefit Italy and Greece.
The policy
shift signals a major policy departure since the 2004 “big bang” enlargement,
in which new members were the main beneficiaries. Between 2014 and 2020, Poland
secured €77bn, Hungary €22bn and Slovakia €14bn; at the time, the south saw 30%
reduction in funding allocations.
https://www.neweurope.eu/article/eu-structural-funds-shift-east-south/