THE EU BUDGET

ES3001

WEEK 17

Who decides the EU budget?How is the annual budget decided (acc. to

Lisbon treaty)? (Art. 314) Commission proposes the draft by 1 September Co-decision: The Council and EP Council adopts its position (QMV) and send it to

EP EP might amend it by simple majority and send

it to Council and Commission The Conciliation Committee makes decision

with QMV and send it to C. and EP and so on

The multiannual financial framework

It lays down maximum amounts ('ceilings') for each broad category of expenditure ('headings' for a clearly determined period of time (several years).

It aims to ensure EU expenditure develops in an orderly manner.

Where does the money go?

Single Market (growth and employment)

Natural Resources (CAP, CFP, environment)

freedom, justice, security - citizenship EU’s role on the global stage Administrative costs Compensations (new members)

List of net contributors and beneficieries

http://www.euo.dk/euo_en/spsv/all/79/

EU budget = Robin Hood? (take from the rich, give it to the poor)

Does the EU budget favour smaller member states? (Mattila 2006)

smaller member states are able to use the disproportional allocation of Council votes to their advantage (p.48).

small member states, such as Denmark, Ireland and Luxembourg, have received significantly more net transfers from the EU budget than their levels of economic prosperity would have justified (Ibid).

Is easy or difficult to reform the EU budget system over time? Why? (Ackrill and Kay 2006) (Benedetto and Hoyland 2007) (Heinemann, et. al., 2010)

Path dependency significant switching costs treaty changes require unanimity of MSs, giving potential

‘losers’ a veto Member State preferences, concerns for preserving shares