Future of EU budget - all EU programmes exempt from budget cuts
The programme of greening payments to farmers may no longer have the benefit of being exempt from future EU budget cuts. This programme, under the Common Agricultural Policy (CAP), will be forced to make significant changes because it may be subject to budget cuts, similar to other EU programmes. Research has shown that these direct payments to farmers have made up over a quarter of the multi-annual budget between 2014 and 2020. Over the summer, the European Commission, prepared a ‘reflection paper’ on how the income and expenditure sides of the EU budget may change in light of the UK’s departure from the European Union. The paper claims that Brexit will lead to new systems for the EU’s revenue stream given that the UK’s contribution amounts to 14% of the overall seven year framework for 2014 to 2020.