The Finnish EU Presidency will propose raising member state contributions to the EU budget from 1% of GDP to 1,08%, three diplomatic sources told Reuters. That is smaller than the 1,3% advocated for by the European Parliament but bigger than the 1% cap that Germany wants.
The proposal is to be tabled at the last EU summit for 2019 on Dec. 12-13.
The news comes as the EU is about to negotiate a seven-year budget in 2021. The current 2014-2020 budget includes the UK, which was the second biggest contributor to the budget. Brexit forces onto the table a difficult negotiation with significant implications on expenditure.
Germany is reluctant to contribute more to the EU budget and wants common spending capped at 1% of GNI, reducing cohesion and agriculture funds. Other net-paying countries require rebates, following the model of the Netherlands and the UK.
Ursula von der Leyen plans more spending on managing migration, fighting climate change and advancing the digital economy, which may bring additional pressure on cohesion funding.