The EU Budget Dispute – A Blessing in Disguise?
AbstractThis paper analyses the European budget and the position of the ten new member states. We argue that the EU budget should be reconsidered, as the Union has expanded to 27 member states and has become more heterogeneous. The budget priorities must be re-oriented towards potentially productive spending programmes. A simple economic growth model illustrates that the current EU budget setting is, at best, neutral with respect to the EU-wide long-term growth potential and may actually hamper growth in the majority of the EU countries if the distortionary nature of taxation is taken into account.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1986.
Date of creation: 2007
Date of revision:
budget; European Union; growth;
Other versions of this item:
- 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.
- Ondřej Schneider, 2007. "The EU Budget Dispute - A Blessing in Disguise?," Working Papers IES 2007/14, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2007.
- Ondrej Schneider, 2006. "The EU Budget Dispute - A Blessing in Disguise?," Research and Policy Notes 2006/01, Czech National Bank, Research Department.
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
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