‘EU is WRONG’ Brussels savaged over funding cut plans – don’t PUNISH states for Brexit

Eurocrats have proposed swinging cuts to funding for the union’s flagship cohesion policy as a way to plug a £11.5billion gap once Britain departs.

But punishing poorer member states by cutting back on cash for the programme would be a “mistake” and will only serve to fuel tensions and animosity across the bloc, Nicola Caputo warned.

The EU’s controversial cohesion policy involves huge sums of cash being invested in the poorest regions the union, with the goal of improving living standards, developing new infrastructure and creating jobs.

Scores of major projects across the UK have been paid for thanks to the policy, but since 2014 the EU has changed tack and opted to only invest cash in the most deprived areas.

Funding for the cohesion project makes up a whopping one-third of the EU’s budget, and Mr Caputo’s home nation of Italy is due to receive more than £37billion (€42billion) from Brussels.

The cash is destined for regions in the south of the country, but the MEP warned under the proposed cuts, up to £5.3billion (€6billion) could be lost.

He said: “It is a mistake to cut the funds of the Union’s main investment policy.

“It is a mistake in a continent that is still suffering from the economic crisis, which has increased economic, political and social disparities within the EU.

“It will not be possible to achieve a strong cohesion policy for all with the cuts that have been announced.

“We need to find new resources to remedy Brexit, giving the EU new means of funding, not cutting them!”

Writing in a blog post, Mr Caputo went on to suggest ways to plug the Brexit funding gap, including an overhaul of the bloc’s VAT system.

He added: “The introduction of new resources could allow us to avoid painful cuts. 

“Rather than subverting and nullifying the cohesion policy, a serious recognition and identification of additional resources are needed.”

In addition to the money lost through Brexit, the EU is also facing pressures on its coffers from other crises including migration.

(Additional reporting by Maria Ortega.)