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The EU budget – how much scope for institutional reform?

Listed author(s):
  • Henrik Enderlein

    (Hertie School of Governance)

  • Johannes Lindner

    (European Central Bank)

  • Oscar Calvo-Gonzalez

    (European Central Bank)

  • Raymond Ritter

    (European Central Bank)

This paper reviews current discussions on reforming the European Union (EU) budgetary procedure and assesses the main reform proposals that have been suggested thus far. It argues that prospects for reforms are presently hampered by the complex interplay between supranational and intergovernmental decision modes and the requirement of any budgetary procedure to strike a balance between efficiency and legitimacy. The paper reviews the main criticisms of the present budgetary procedure and the related reform proposals, which are assessed on the basis of relevant theoretical literature as well as brief comparisons with the federal budget of the United States. The paper argues that the current EU budgetary procedure matches by-and-large the current equilibrium between all actors involved, given the present state of political integration in the EU. Significant modifications to the budgetary procedure would depart from that equilibrium.

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File URL: http://econwpa.repec.org/eps/pe/papers/0509/0509005.pdf
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Paper provided by EconWPA in its series Public Economics with number 0509005.

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Length: 33 pages
Date of creation: 06 Sep 2005
Handle: RePEc:wpa:wuwppe:0509005
Note: Type of Document - pdf; pages: 33
Contact details of provider: Web page: http://econwpa.repec.org

References listed on IDEAS
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  1. Torsten Persson & Gerard Roland & Guido Tabellini, 2000. "Comparative Politics and Public Finance," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1121-1161, December.
  2. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1027-1056.
  3. Torsten Persson & Gérard Roland & Guido Tabellini, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1163-1202.
  4. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
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