EU farm subsidies face chop due to Brexit budget hole
Governments will be asked to find funds to make up shortfall
Farm subsidies face being chopped as Brexit hammers the EU coffers, with the Government being asked to find extra funds to make up the shortfall.
Budget commissioner Günther Oettinger has warned that spending cuts are coming across the board to deal with the Brexit black hole.
This will include reductions to the common agricultural policy (CAP), which eats up 40pc of the bloc's budget.
He said the EU also needed to "shift expenditure" away from traditional policies to pay for migration and defence, and that governments needed to consider paying in "fresh money" if they wanted the EU to stay relevant.
Among the options are less generous payments to farmers or a tax on financial transactions. Applying common energy or environmental taxes to imports were also considered in a paper on reforming the EU budget.
"We believe that cuts - if we compare to the current approach - are going to be necessary over the next decade," Mr Oettinger said. "But it is clear that with cuts alone, it is not going to be possible to plug the Brexit gap."
While Mr Oettinger said he was not in favour of "sweeping cuts" to the CAP, regional policy chief Corina Cretu said governments would have to consider topping up direct payments to farmers.
"We put all the ideas on the table," Ms Cretu told reporters in Brussels.