Germany's European Union financial contribution set to surge by 19% in 2021
Poland is poised to be the largest net recipient from the EU budget for the second consecutive year, according to figures from the European Commission. This status, however, is delicate given the criticism of Poland's handling of the rule of law.
In 2021, Poland is expected to benefit from financial contributions of approximately 5.7 billion euros, while repaying 18.1 billion euros. This net balance of 12.4 billion euros places Poland at the top of the list of net recipients.
The EU budget policy's approach towards member states violating the rule of law is under scrutiny, with FDP politician Ullrich expressing concern about its consistency. Ullrich's comments suggest a potential tension between the EU budget policy and the rule of law in member states like Poland.
Germany, the economic powerhouse of the EU, will transfer approximately 38 billion euros to Brussels in 2021, making it the largest net contributor to the EU budget. Despite the UK's exit from the EU and Germany's increased share of the total economic performance of the EU, the EU budget has shrunk in absolute terms this year, but Germany is paying more than before.
Ullrich's criticism of the EU budget policy for planning high payments to member states criticized for their handling of the rule of law has added to the debate. He believes that the EU budget policy loses credibility if member states that violate the rule of law receive budget cuts and still receive high payments from the EU budget.
The European Union member states expected to receive the highest net payments from the EU budget this year, particularly considering developments in Poland, are primarily Poland itself along with other cohesion funds’ beneficiary countries. Poland remains one of the largest net recipients due to its sizeable cohesion funding, while Germany stands out as the largest net contributor or payer within the EU budget.
In 2020, Poland had the highest operational net balance from the EU budget, with the Federal Government assuming that Germany paid 15.5 billion euros net into the EU budget last year, an increase of around 6.1 billion euros compared to the previous year. This corresponds to a plus of more than 19 percent.
The EU budget policy's stance towards member states violating the rule of law may impact its credibility, according to Ullrich. His comments indicate a concern about the long-term implications of the EU budget policy's inconsistency in addressing rule of law violations in member states.
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