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Reforming the EU Budgetary Procedure: Is Codecision a Step Forward?

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Author Info
Luisa Giuriato

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Abstract

Codecision is the main European Union legislative procedure and the 2007 Reform Treaty draft has adopted it to improve the budgetary process. However, at close examination, codecision and the current budgetary process show an identical structure. Both are designed as non-cooperative alternating offers bargaining games between institutions and both, although in different measure, have gone through periods of interinstitutional deadlocks and conflicts, which can be ascribed to the insufficiency of the non-cooperative bargaining setup with respect to the task of providing for joint-decision making by the Parliament and the Council of Ministers: in particular, the opportunistic interpretation of the Treaty provisions by the Parliament in the 1980s was one of the consequences of the strict bargaining design. The article argues that the lacking elements for joint decision making have been gradually inserted in the procedures by means of informal negotiation institutions, which are not only mechanisms for equilibrium selection but also corrective devices to strict non-cooperative procedures. Informal institutions will play a fundamental role also in the change from the current budgetary procedure to the one designed in the 2007 Reform Treaty, where the Parliament does not seem to gain a 'dominant position', the Commission improves its scope for action and the Council consolidates its role. (JEL codes: D73, D78, H77) Copyright , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/cesifo/ifn034
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Article provided by Oxford University Press in its journal CESifo Economic Studies.

Volume (Year): 55 (2009)
Issue (Month): 1 (March)
Pages: 57-93
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Handle: RePEc:oup:cesifo:v:55:y:2009:i:1:p:57-93

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Von Hagen, J., 1992. "Budgeting Procedures and Fiscal Performance in the European Communities," European Economy - Economic Papers 96, Commission of the EC, Directorate-General for Economic and Financial Affairs (DG ECFIN).
  2. Alberto Alesina & Roberto Perotti, 1994. "The Political Economy of Budget Deficits," IMF Working Papers 94/85, International Monetary Fund.
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  3. Alesina, Alberto & Hausmann, Ricardo & Hommes, Rudolf & Stein, Ernesto, 1999. "Budget institutions and fiscal performance in Latin America," Journal of Development Economics, Elsevier, vol. 59(2), pages 253-273, August. [Downloadable!] (restricted)
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  4. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January. [Downloadable!] (restricted)
  5. Michael Shackleton, 2000. "The Politics of Codecision," Journal of Common Market Studies, Blackwell Publishing, vol. 38(2), pages 325-342, 06. [Downloadable!] (restricted)
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This page was last updated on 2009-11-28.


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