Brussels is set to push EU member states towards a radical overhaul of its €1.2tn common budget, tying payments to economic reforms instead of automatically compensating poorer countries.
Talks on the next long-term budget round will start in the autumn, kicking off one of the EU’s most complex and fraught policy negotiations.
One of the most contentious changes sought by the European Commission will be to revamp rules governing so-called cohesion funds, which distribute tens of billions of euros a year to close the economic gap between richer and poorer parts of the union.
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