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The EU Budget Dispute – A Blessing in Disguise?

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Abstract

This paper analyses the current budget of the European Union and the relative position of the new member states. The author argues that the EU budget should be reconsidered, as the union has expanded to 27 member states and has become more heterogeneous. The budget priorities should be re-oriented toward growth enhancing spending programs. A simple economic growth model illustrates that the EU budget is, at best, neutral with respect to EU-wide long-term growth potential, and may actually hamper growth in the majority of member states if the distortionary nature of taxation is taken into account.

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  • Ondrej Schneider, 2007. "The EU Budget Dispute – A Blessing in Disguise?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(7-8), pages 304-323, September.
    • Handle: RePEc:fau:fauart:v:57:y:2007:i:7-8:p:304-323
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    Cited by:

    1. Hofreither, Markus F., 2007. "EU-Haushaltsreform und Agrarbudget - nationale Kofinanzierung als Lösungsansatz?," Discussion Papers DP-30-2007, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    2. van der Hoek, M. Peter, 2011. "European Union Finances," MPRA Paper 89953, University Library of Munich, Germany, revised 2011.
    3. Ionela POPA & Dorina LUTA & Diana CODREANU, 2012. "Romania and the European Union budget, the integration costs and benefits," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 368-372, May.

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    More about this item

    Keywords

    budget; European Union; growth;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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