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has no capacity
important new initiatives
on essential projects,
Higher interest rates have added pressure to the EU's long-term
budget, already squeezed by multiple crises, including the conflict
in Ukraine, migration, and energy supply shortages,
Handelsblatt newspaper reported on
In the aftermath of the pandemic, those issues are overwhelming the
EU's financial resources, the German outlet wrote.
Budget reserves are
"practically exhausted," the article says, while challenges are
growing and Brussels' ability to act is dwindling...
The report comes ahead of an EU
review of its 2024 budget as well as the so-called Multiannual
Financial Framework (MFF) for the years 2021-2027.
According to the paper, the EU member states' willingness to cover
the costs of the single budget is low, particularly in Germany, the
most important net contributor to the union.
All of this could
undermine the EU's capacity to finance its priorities or react to
unforeseen events, and puts flagship programs at risk, the outlet
The report pointed out that the bloc has a lot of mandatory
spending, which leaves it with less than €30 billion ($32 billion) a
open up new
sources of raw materials
Silk Road Initiative...
Confined to rigid
"the EU cannot rise
to become a geopolitical power" Handelsblatt concluded,
...noting that with the
current budgetary structure the economic bloc is not up to its