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Tuesday, 27 October 2009

Brussels plans 'major review' of EU spending priorities

A draft review of the European Union's budget has shocked contributors such as France as spending priorities are shifted from farm policy to the EU's economic renewal, climate change and energy as well as foreign relations. The European Commission's draft budget review is raising eyebrows in EU circles. The proposal seeks a "root and branch reform" of the 130 billion euro annual budget, which currently devotes 45% of spending to agricultural policies. It proposes redirecting funds to policies which address key challenges such as globalisation and suggests more flexibility in allocating funds, with the current system considered to be too "rigid" and seen as leading to "inertia".

Source: EurActiv