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Brussels Prepares for "Agenda 2000" Reforms Amid Regional Spending Cuts

Strategic Insights

— 1 min read

European Commission officials are set to unveil details of the "Agenda 2000" reforms on Wednesday, which aim to mitigate the financial burden of expanding regional and farm spending to Eastern European countries that will join the EU early in the next century. The reforms, designed to avoid breaching the existing spending limit (1.27% of member states' GNP), will likely lead to significant cuts in aid to regions across Europe, with the losers facing a four- to six-year transition period. The UK government is particularly concerned about the impact of the cuts on its regions, which are expected to bear the brunt of the reductions.

Key Takeaways:

  • The European Commission will propose the "Agenda 2000" reforms on Wednesday, aiming to expand regional and farm spending without breaching the existing spending limit.
  • The reforms will lead to significant cuts in aid to regions across Europe, with the losers facing a four- to six-year transition period.
  • Britain's regions will likely shoulder the worst cuts, with the government arguing that national figures for income per head show the country is already doing better than other EU states in reducing poverty.
  • The UK government's case will be hampered by 18 years of Tory refusal to co-operate with Brussels on EU-driven regional policy.
  • The reforms will be the subject of a lengthy negotiation, with several member states and potentially Britain threatening to veto enlargement if they don't get a better deal.
  • Arlene McCarthy, Labour spokeswoman on regional policy in the European Parliament, warns that the cuts will harm perception of the EU at a critical time.

Statistics:

  • The existing spending limit for regional and farm spending is 1.27% of member states' GNP.
  • The EU's spending limit for regional aid is expected to be reformed, with aid being cut in favor of poorer regions.
  • The four- to six-year transition period is designed to help regions adjust to the changes in regional aid.
  • The UK government argues that its national figures for income per head show the country is already doing better than other EU states in reducing poverty.
  • Britain's regions will likely face significant cuts, with the government warning that this will have a negative impact on public support for the EU.

Sources:

  • The European Commission
  • Arlene McCarthy, Labour spokeswoman on regional policy in the European Parliament
  • The European Parliament

The Times

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