EU to go special - Towards Enlargement Cost of EU Enlargement
May 8, 2024
In this engaging discussion, Johannes Lindner, co-director of the Jacques Delors Centre, and Thu Nguyen, deputy director at the same institution, dive into the financial intricacies of EU enlargement. They debunk sensational cost estimates, advocating for a more balanced outlook on funding candidate countries like Ukraine. The duo also explores institutional reforms crucial for accommodating new members and debates innovative membership structures, highlighting the need for a cohesive and secure future for an expanding union.
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Lower Realistic Enlargement Costs
- The leaked estimate of 186 billion euros for Ukraine's EU funding is about double the realistic calculation of 13.2 billion euros annually.
- Applying EU budget adjustment mechanisms lowers total enlargement cost to about 19 billion euros per year for all candidates.
EU Budget Caps and Adjustments
- The EU budget has caps on cohesion spending, limiting new members to 2.3% of their GNI.
- There are also protections for current beneficiaries, and some regions lose funding eligibility as overall EU GDP shifts.
Gradual Agricultural Fund Access
- When Hungary and Poland joined the EU, they initially received only 40% of agricultural funds.
- These funds then increased gradually over 10 years until full access was achieved, reflecting a cautious integration approach.