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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 EU 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 jointdecision 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 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. In the change from the current budgetary procedure to the one designed in the Reform Treaty, the Parliament does not seem to gain a formal ‘dominant position’, whereas the Commission improves its scope for action and the Council consolidates its role.

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File URL: http://dep.eco.uniroma1.it/docs/working_papers/WP114.pdf
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Publisher Info
Paper provided by Sapienza University of Rome, Department of Public Economics in its series Working Papers with number 114.

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Length: 37 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:sap:wpaper:114

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Related research
Keywords: EU’s finances; legislative codecision; budgetary procedure; 2007 Reform Treaty;

Other versions of this item:

Find related papers by JEL classification:
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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References listed on IDEAS
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.
    Other versions:
  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)
    Other versions:
  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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