Money from Brussels
Brexit threatens structural aid for East Germany
East Germany receives billions of funding from the EU. These structural aids could fall away as a result of the Brexit.
Brexit tears a billion-euro gap in the EU budget.
The money could be saved in subsidies for structurally weak regions.
East Germany would also be affected. Germany would then receive 18 billion less from EU pots.
In Brussels there are currently three European maps. They are colourful indeed. But the knowledge may be quite bitter to some viewers. The three maps from the European Commission illustrate the partly drastic consequences of a British EU exit for the regions in the Union. Germany could also be hit hard by Brexit. On the one card the new states are dyed in a strong orange tone, on the other the coloyr is much paler: the East German regions are only shown in white. White means that in future no aid from Brussels will flow to East Germany.
To date, the new federal states are still among the great beneficiaries of EU structural funding. If an old town is restored between Thuringia and Mecklenburg-Western Pomerania or a sporting facility is being built, money from Brussels is mostly involved. In Saxony, for example, further training measures of 660 million euros are financed from the European Social Fund. And in the Thuringian town of Ilmenau, the EU will soon be building a swimming pool. The funding has already been received by the municipality, but the question is how long it will continue.
After Brexit, there is at least a gap of at least 10 billion euros in the EU budget. Money that must be saved somehow, that much is certain. While spending on defence and security is increasing, net-worth contributors like Germany, France or Sweden are only willing to jump into the breach for the British under conditions. In spring 2018, EU Budget Commissioner, Günther Oettinger wants to present the final budget draft. Up to then the contributors will argue behind the scenes, who must bear the largest Brexit load.
Germany could lose 18 billion euros in funding
In the best case, everything remains as it is. The East German countries could then expect further generous aid. In the last budgetary framework from 2014 to 2020, there was about € 8 billion, with which Brussels supported the construction of the East. In the Commission's view, this is a "zero scenario". Same income, same expenses. However, if the situation is different, the Commission has alternative plans. They expect the West European regions to go empty. With the exception of Cyprus, Portugal and Greece. Germany alone would then lose 18 billion euros in funding. Money, which one is reluctant to renounce claim to in Berlin.
In a first statement on EU support policy after 2020, the Federal Government has already announced resistance. It also calls for the EU to continue to support regions facing "profound challenges". Berlin is thinking about the integration of refugees and coping with demographic change. Categories, which in any case apply to East Germany. There is also a lot of thought about whether the allocation of funding money will depend on whether the beneficiaries conform to "basic principles of the law". With this, Berlin wants to put pressure on Poland, which increasingly denies these principles.
The economic gap between the regions remains high
Originally, structural aid was designed to reduce prosperity gap in the EU. Since the Lisbon Treaty, the focus has been more on measures for general economic promotion. Also regions that are doing well in comparison to other parts of Europe receive support from Brussels. However, they are likely to be the first ones to be affected by savings.
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