EU Budget and Admin Commissioner, Johannes Hahn, told CNBC that a breakthrough was desperately needed on the common budget as European leaders discuss their future spending, at the crunch summit today. He explained a “significant delay” to a budget agreement would impact future European Union policy plans. He claimed the future budget will be smaller than previous years but EU nations will have to pay in more to compensate for the absence of Britain due to Brexit.

Mr Hahn said: “We have already anticipated the United Kingdom leaving.

“This is why the future budget will be smaller as the UK was the second biggest contributor.

“The individual member states have to pay a little bit more in order to compensate for the loss of the UK but also to invest in future and necessary policy areas.” 

The CNBC reporter Silvia Amaro interviewing Mr Hahn explained the member states of the European Union will have to “step-up” in the absence of the UK. 

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Ms Amaro added some EU nations are “reluctant” to increase their spending which is ultimately causing tension among the countries.

Mr Hahn insisted a breakthrough needed to be made on the budget quickly otherwise the EU’s policy plans were at risk.

Mr Hahn closed by saying: “It is absolutely high time to get a budget deal.

“If there is any further significant delay it will have an impact on the start of the different programmes.

“The EU has a very ambitious goal concerning the environment as we aim to be CO₂ neutral by 2050.” 

Estimates from former EU Budget Commissioner Günther Oettinger show Britain’s departure will result in a budgetary vacuum worth £9.9bn (€12bn) to £12.5bn (€15bn) over the next seven years.

To make up for the losses, the European Commission and the European Council have been pushing members to increase contributions to 1.11 percent of their gross national income.

French President Emmanuel Macron has locked horns with European leaders as he has demanded EU member states agree to pay more into the common budget. 

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The President admitted France would be required to pay more into the common budget to compensate for the loss of Britain but urged member states to agree to the proposed contribution plan to deliver on the new priorities agreed with the European Commission. 

Upon his arrival to the EU Summit on Thursday, he said: “We have to acknowledge the departure of the British.

“But it’s still unacceptable to have a Europe that compensates for the departure of the UK by reducing its standards.

“We are here to discuss our ambitions and we have agreed with the new Commission.”

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