It also said the EU should seek to add value rather than merely recycle money (eg, directing funds to poorer areas of rich countries that ought to be able to look after themselves).

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The Regional Policy Commissioner, Johannes Hahn, said "we need to spend more intelligently, focus on the EU's top priorities and add visible value to what national and regional authorities are already doing".

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However, I caution that lower EU rates may have a serious implication for the value of the euro.

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