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How to Finance Eastern Enlargement of the EU

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  • Christian Weise

Abstract

This paper analyses the consequences of the planned enlargement on the EU budget for the years 2007 and 2013. It concentrates on the EU's Common Agricultural Policy and Structural Policy and calculates the possible fiscal consequences of enlarging the EU for various policy scenarios. Enlarging the EU could be financed without overstepping the current upper limit for the EU budget, but it increases the pressure for EU policy reform. The main aim of such reforms is to reduce income support in agricultural policy and to concentrate structural policy on needy member states. These reforms would lead to a distribution of net burdens which was more strongly orientated according to the relative income of EU members. The burden for net contributors would remain under control, financial support for needy member states in the present EU would continue and new members would receive equal treatment from expenditure-related programmes.

Suggested Citation

  • Christian Weise, 2002. "How to Finance Eastern Enlargement of the EU," Discussion Papers of DIW Berlin 287, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp287
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.38595.de/dp287.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kellermann, Kersten & Schlag, Carsten-Henning, 2005. "Eignung der liechtensteinischen volkswirtschaftlichen Gesamtrechnung als Basis für Beitragszahlungen an internationale Organisationen: Gutachten im Auftrag der Regierung des Fürstentums Liechtenstein.," KOFL Studien, Konjunkturforschungsstelle Liechtenstein (KOFL), Vaduz, volume 1, number 1.
    2. Carmela Martín & Ismael Sanz, 2003. "Consequences of enlargement for European Regional Policy: the spanish viewpoint," European Economy Group Working Papers 27, European Economy Group.
    3. Cace, Corina & Cace, Sorin & Nicolaescu, Victor, 2011. "Absorption of the structural funds in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 84-105, June.
    4. Richard R. Ochmann, 2005. "The first EU Eastern enlargement: impacts on the German economy and public perceptions," IWE Working Papers 158, Institute for World Economics - Centre for Economic and Regional Studies.
    5. Christian Fahrholz & Philipp Mohl, 2003. "Fiscal and Monetary Policy in Belgium, France, Germany, Luxembourg, and The Netherlands," Eastward Enlargement of the Euro-zone Working Papers wp17c, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Apr 2003.
    6. Pelkmans, J., 2003. "Economic implications of the enlargement of the EU," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 38.
    7. Neheider, Susanne, 2006. "Die Rolle der Strukturpolitik in der Europäischen Integration," Discussion Papers 2006/1, Technische Universität Berlin, School of Economics and Management.

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    More about this item

    Keywords

    Enlargement; EU Budget; reform scenarios;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F2 - International Economics - - International Factor Movements and International Business
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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