Merkel wants to rejig budget

Brexit offers the EU an opportunity for a rethink of its financial set-up, German Chancellor Angela Merkel said on Thursday before an EU summit that will tackle the bloc’s future budget.

Addressing the lower house of parliament, Merkel said the future of the EU would be a priority in her fourth term.

“We need a new start for Europe,” she said, adding the looming debate on a new budget for the 27-member bloc after Britain’s withdrawal in 2019 could lead to some big changes.

“The debate about the future financial framework is also a chance to look at the finances of the EU as a whole,” she said.

Leaders at Friday’s summit will discuss whether to boost the next seven-year budget to pay for common policies on security, defence and migration between 2021 to 2027.

Germany is the biggest contributor and has said it is ready to pay more, although some others argue that a bloc sans Britain implies a smaller budget.

Merkel sought to reassure those in her conservative bloc who are more sceptical about deeper EU integration and paying out for poorer, debt-ridden member states. “Solidarity cannot be a one-way street.”

Taking aim at some eastern European members, Merkel said the bloc’s structural funds should be linked to taking in foreign migrants. Eastern members with right-wing governments have rejected an EU burdensharing plan for migrants coming from the Middle East, Africa and Asia.