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Behind the headline cuts in the European Union’s 2014-2020 Multi-Annual Financial Framework (MFF), lies a new EU retrenchment policy on its eastern borders. The protection of EU Structural and Cohesion funds to the European Union and the gutting of the “Global Europe” spending ceiling, within which the commitments to the Eastern Partnership initiative are housed, demonstrates the increasing disinterest the EU has to further enlargement. Whilst the actual impact on Eastern development is not yet clear, mixed success in promoting democracy and development over the last year does not bode well for continued enlargement.

Budget winners and losers

Whilst newspapers focused on David Cameron's calls for a real terms cut in the headline budget, there was a groundswell movement in favour of promoting long-term growth through investment across the European Union, particularly in the East. The subsequent agreement has initiated a scramble for funds within an overarching cut of the budget to the sum of 969 billion euros. Central Eastern Europe fared well and in particular, Poland, which led the so-called Friends of Cohesion Policy, can claim to have won this round.

Despite weathering the economic downturn better than a number of Western European states, Poland will now receive more EU investment than under the previous budget – 105.8 billion euros, of which 72.9 billion euros was from the cohesion policy. As Polish Prime Minister Tusk publicly stated before the Summit: “Good Polish-German and Polish-French relations are really helping to get a compromise… [and] not less for cohesion funds.” He was proven to be correct and the overall commitment ceiling of 325 billion euros gave Poland, along with Bulgaria, the Czech Republic and Romania, increases in its national cohesion funding.

Published in The Transnationalist
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