The moment of truth has arrived for the Spanish. They can either retreat in favor of the EU or else remove their masks and show themselves as true skeptics. The test of fire begins this Wednesday and Thursday when the European Commission will present its formal proposals and figures on the EU budget for the fiscal years 2014-2020.
Spain is near the edge. For the first time in 25 years since it entered the european club, the country will be paying more in contributions to the EU than what it receives in help and incentives. And Extremadura will be the least prosperous region in all of the EU and, therefore, the only region in Spain that will keep benefitting from EU aid or the "Objetivo de Convergencia" plans.
Intermediary regions
To sweeten the current situation, several weeks ago the European Commission considered a proposal that would create a 9 billion euros fund to provide aid to several regions: Andalucía, Castilla-La Mancha, Galicia and the Lander in East Germany. These are not the poorest regions in Europe, but nearly so. In 2014 they will no longer be grouped with the regional funds that until now have supported their development by transferring funds to eastern countries that joined the EU between 2004-2007.
The fund is designed to avoid further setbacks in the regions once they are cut out of European regional funds. Sources from the European Community calculate that Spain and East Germany would keep the biggest part of the pie.
Translated and edited in English by Brandon Dyches and Jose L. de Haro (joseluisdeharo@eleconomista.es)
