European commissioner for budgets and financial planning, Janusz Lewandowski told Polish Radio this morning that the EU must find new ways of funding expenditure in 2012, otherwise nations like Poland will be major casualties as expenditure is slashed.

The European Commission, the executive wing of the EU, wants increases in total spending on cohesion and regional-aid programmes, agriculture and rural development - all of which Poland is a major recipient of.

But nations like the UK will be seeking cuts in overall expenditure going forward and expect the EU to plan austerity measures, as domestic governments are having to do to make cuts in debt levels.

“The EU has no choice - it must find new ways of raising revenue,” Commissioner Lewandowski told Polish Radio this morning.

Pressure has been put on the budget by the new finance bailout plan for Euro Zone countries after the finance crisis in Portugal, Greece and Ireland, he said.

The Commissioner stressed that any decision on introducing a new tax on financial transactions, or other levies, for example, must be unanimous and ratified by all EU members and negotiations in the present climate will be tough.

Commissioner Lewandowski will present his proposals to the European Parliament next week and to all 27 finance ministers on 17 May. (pg)