The European Council has failed to reach an agreement on the Multiannual Financial Framework 2014-2020 during its two-day summit in Brussels last week. The next summit is due in January of 2013. President of the European Council Herman Van Rompuy is by that time due to present a new proposal for the EU budget.
Bottom line: Polish (1 0707 CZK, 1,97%) Donald Tusk said that the new budget draft to be presented at the beginning of 2013 would contain no further reductions of funding in the two key areas for Poland: the cohesion policy and the common agriculture policy. Van Rompuy's latest offer included a slight cut in the cohesion allocation capping rates to 2.35% from a 2.40% prior offer. That meant EUR 1.5bn less for Poland. Therefore, according to this last proposal, Poland was to receive around EUR 72.4bn in cohesion funds vs. earlier proposed EUR 73.9bn and around EUR 68bn in the previous Multiannual budget.