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Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?

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  • Heikki Kauppi

    ()
    (Department of Economics, University of Turku)

  • Mika Widgrén

    ()
    (Department of Economics, Turku School of Economics)

Abstract

The member states have self-interested objectives and they use their voting power in the Council of Ministers (CM) to maximize their shares from the EU budget, whereas European Parliament (EP) uses its power to support benevolent objectives and equality between member states. Given the current decision procedures of the EU, EP has effective power on non-compulsory expenditure covering structural spending, but not on compulsory expenditure consisting mainly of agricultural spending. We use this fact to assess how the assumed benevolent objectives of EP turn into member states' budget receipts in a power politics based model.

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Bibliographic Info

Paper provided by Aboa Centre for Economics in its series Discussion Papers with number 38.

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Length: 31
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:tkk:dpaper:dp38

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Keywords: European integration; EU budget; voting power;

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References

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  1. Napel, Stefan & Widgren, Mika, 2004. "The Inter-institutional Distribution of Power in EU Codecision," Discussion Papers 944, The Research Institute of the Finnish Economy.
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  8. Dan S Felsenthal & Moshé Machover, 2004. "Analysis of QM rules in the draft constitution for Europe proposed by the European Convention, 2003," Social Choice and Welfare, Springer, vol. 23(1), pages 1-20, 08.
  9. Moshé Machover & Dan S. Felsenthal, 2001. "The Treaty of Nice and qualified majority voting," Social Choice and Welfare, Springer, vol. 18(3), pages 431-464.
  10. Charles B. Blankart & Christian Kirchner, 2003. "The Deadlock of the EU Budget: An Economic Analysis of Ways In and Ways Out," CESifo Working Paper Series 989, CESifo Group Munich.
  11. Baldwin, Richard & Widgrén, Mika, 2004. "Winners and Losers Under Various Dual Majority Rules for the EU Council of Ministers," CEPR Discussion Papers 4450, C.E.P.R. Discussion Papers.
  12. Kauppi, Heikki & Widgren, Mika, 2007. "Voting rules and budget allocation in the enlarged EU," European Journal of Political Economy, Elsevier, vol. 23(3), pages 693-706, September.
  13. Heikki Kauppi & Mika Widgrén, 2004. "What determines EU decision making? Needs, power or both?," Economic Policy, CEPR & CES & MSH, vol. 19(39), pages 221-266, 07.
  14. Federico Valenciano & Annick Laruelle, 2000. "- Shapley-Shubik And Banzhaf Indices Revisited," Working Papers. Serie AD 2000-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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Cited by:
  1. Kauppi, Heikki & Widgrén, Mika, 2009. "The Excess Power Puzzle of the EU Budget," CEPR Discussion Papers 7220, C.E.P.R. Discussion Papers.
  2. Widgrén, Mika, 2008. "The Impact of Council Voting Rules on EU Decision-Making," Discussion Papers 1162, The Research Institute of the Finnish Economy.

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