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Europe's financial perspectives in perspective

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  • George Gelauff
  • Herman Stolwijk
  • Paul Veenendaal

Abstract

The budget of the European Union raises much commotion. Many member states anxiously guard their net payment positions: don't they pay too much for the EU compared to what they receive from the EU? Read also the accompanying press release.Yet, from an economic perspective the subsidiarity principle is much more important: Should the funds be allocated by the Union or by the individual member states? From that angle, a number of fundamental reforms of European agricultural policy and structural actions (support to lagging regions) suggest themselves. These reform options may roughly halve the EU budget. In addition they happen to bring the net payment positions of member states closer together.

Suggested Citation

  • George Gelauff & Herman Stolwijk & Paul Veenendaal, 2005. "Europe's financial perspectives in perspective," CPB Document 101, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:docmnt:101
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    References listed on IDEAS

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    Cited by:

    1. Werner Hölzl, 2006. "Cohesion and Excellence. Two ways to a better Europe?," WIFO Studies, WIFO, number 28810.

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    More about this item

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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