IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa05p464.html
   My bibliography  Save this paper

European economic integration regional inequalities and the Community budget

Author

Listed:
  • Kostopoulos Tryfon

    ()

Abstract

In this article we will attempt to analyse the dialectic relation of European economic integration under the prism of the European Union public finance. The course of European integration will be examined via the Community Budget. The vital question in our selected subject, seeking for a persuasive answer, is the relation of economic completion and unequal growth. It is, as we will prove, an ambiguous phenomenon. This ambiguity is consisted in the fact that the European integration process is developed in the base of social oppositions and is determined by the objecting interests of capital and labour. It is impossible to comprehend the European economic and political integration, outside the process of production internationalisation and supranational mechanisms of social classes regulation. In order to enlighten the relation between economy and policy, it is necessary to present extensively the public finances of the Union. Thus, we can achieve the necessary mediation between the European completion and the E.U. budgetary policy. For all the above reasons, we will proceed in a comparative analysis of the Community budget and that of the member states of the E.U. Furthermore, we will proceed to an analytic sectoral structure of the Community budget, where important redeployments in the Community financing are observed. Policies recede, like the Common Rural Policy, and policies are found in rise, as for example the European Regional Policy. We will emphasize in the critical question: how it is possible for the EU, having a budget which hardly comes to the 1% of the GNP of the European Union, to face the problem of regional inequalities, when the national budgets of the member states do usually exceed the 50% of GNP? We will mention the failure of the Intergovernmental Conference for the approval of the European Constitution (Brussels 2003) and the letter sent to the Community Chairman by «6» wealthy countries (Germany, France, Great Britain, Holland, Sweden, Austria) countries, which, as a rule, are supporting the Structural Funds of the Union. These countries request to reduce the Community Budget at the 0,8% of European GNP. Our discussion therefore is focused in the relation of the rich North and the poor South. In general, the rich countries, especially after the wreck of Intergovernmental Conference declare the “two speeds Europe”, wishing obviously to “punish” some poor countries like Poland. At this point, is also situated the interest of our own approach. The Community Budget investigation and in extension, his as much as possible increase, can confront the problems of unequal growth and bring a solution to the regional problem in the EU25. The “hard core” of the EU is in opposition to this perspective and counter proposes a “two speeds Europe”. The future seems uncertain.

Suggested Citation

  • Kostopoulos Tryfon, 2005. "European economic integration regional inequalities and the Community budget," ERSA conference papers ersa05p464, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa05p464
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/464.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p464. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.