European Union needs massive price range to fund new priorities after Brexit

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"This proposal is made on the basis of calling on member states to pay more and making savings/cuts in some policy areas, taking account of the impact of the United Kingdom leaving the European Union".

Currencies in eastern European Union nations continued recent declines against the euro on Wednesday, with the Polish zloty ranking as the worst emerging market performer in the past five days, with losses reaching 1.2 percent.

Ireland will be particularly concerned about farm payment cutbacks although it is expected that the Commission will propose cuts to direct payments to farmers be made degressively, by progressively reducing acreage-based payments to larger farms.

The EC proposes to allocate 25% of the next multi-annual EU budget for environmental protection, thereby ensuring that the new economic and political challenges will not weaken the Union's determination to fight pollution.

"Overall, the Commission proposes a long-term budget of 1.135 billion euro in commitments... over the period from 2021 to 2027, equivalent to 1.11% of the EU27's gross national income", the press release read.

"If the gap in the Rural Development programme of €47mn is paid by the Irish Government, which I expect they will post 2020, it means that farmers in the disadvantaged areas, areas of natural constraint as we call them, will not have a cut in their budget either".

States already face fines for violating European Union rules, but now there is talk of holding back some budget funds if states undermine free speech and judicial independence. They, like all the 27 (the United Kingdom is not party to the discussion), can each veto a final deal. Poland and Hungary were being targeted.

He warned that favourable economic conditions do not mean the European Union can be complacent.

The EU is also heading for a clash between countries prepared to increase their budget contributions - notably France and Germany - and those who don't want to, among them Finland and the Netherlands.

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The "new" Europe states are already engaged in a battle to defend cohesion and farm spending.

The Commission proposal for the EU budget for 2021-2027 calls for the establishment of a Reform Support Programme and a European Investment Stabilisation Function.

The German government said the proposal provided a good basis for the beginning of negotiations on the future of the EU's finances.

What is likely to change?

The EU Commission is proposing a cap on payments at €60,000 per farmer. A border force of up to 10,000-strong is proposed. Mr Oettinger is reported to be considering a five-fold increase in allocations to Frontex, the border agency helping member states to process irregular migrants.

According to Oettinger's budget plans, the EU's Common Agricultural Policy will also be scrutinized for cuts.

"The focus will be on those reforms that can contribute most to the resilience of domestic economics and have positive spill-over effects on other member states", said the draft proposal, pointing to labour market and tax reforms, capital markets development and improvement in business environment and human capital.

"The vast majority of [Irish] farmers should not feel the cuts", he said.

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