Challenges ahead are disproportionally larger

— Brexit. The UK is set to leave the European Union next year in March after
47 years of membership. This will be followed by a transitional period
foreseen until the end of 2020 during which the EU’s second largest
economy can be expected to fully comply with its financial obligations to the
EU budget. But after that it will leave a sizable gap in the EU’s budget
estimated at above EUR 10 bn annually, based on the current MFF. This
gap needs to be addressed either through additional funds to be stemmed
by the 27 remaining members, budget cuts or a combination of the two, as
proposed by the Commission.

— A dramatically changed geopolitical environment, calling for additional
resources (of around EUR 10 bn annually according to EU Commissioner
Oettinger) on migration, security and defence. This comes on top of
strengthened investment needs identified to maintain the bloc’s
competitiveness and innovative potential, linked to its ability to deal with
long-term developments such as technological change, globalization and
climate change.