2020.07.10 17:05

Lithuania to be compensated for emigration in EU's budget proposal

Vaidotas Beniušis, BNS2020.07.10 17:05

Updated EU budget proposal by European Council President Charles Michel keeps in place compensation for Lithuania’s losses caused by emigration.

Michel presented the document, a copy of which was obtained by BNS, on Friday ahead of next week's EU summit.

The proposal retains compensation for countries with high emigration figures, which will be calculated by multiplying the difference in the number of inhabitants by 500 euros, meaning that Lithuania would receive an additional 180 million euros in cohesion funding.

Read more: EU to compensate Lithuania for emigration

The money would help alleviate a sharp decrease in EU structural funding starting from 2021.

After the first round of budget talks ended without a deal in February, Lithuanian President Gitanas Nausėda said that the mechanism was an achievement that will remain in place.

In a move that would help ease the pressure on national budgets, the latest proposal raises the maximum possible rate of EU co-financing to 85 percent of a project's total cost, up from the previous 75 percent.

This would apply to one of Lithuania's two statistical regions – the less economically developed region outside the country’s capital Vilnius.

Co-financing would cover up to 40 percent of a project’s total cost in the Vilnius region.

There are no changes to the previous proposal for direct payments to farmers, funding for the decommissioning of Lithuania’s Ignalina nuclear plant, and the Russian Kaliningrad transit scheme.

EU leaders are meeting next Friday and Saturday for talks on the bloc's 2021–2027 budget and the coronavirus recovery fund.

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