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The EU budget – how much scope for institutional reform?

Author

Listed:
  • Henrik Enderlein

    (Hertie School of Governance)

  • Johannes Lindner

    (European Central Bank)

  • Oscar Calvo-Gonzalez

    (European Central Bank)

  • Raymond Ritter

    (European Central Bank)

Abstract

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.

Suggested Citation

  • Henrik Enderlein & Johannes Lindner & Oscar Calvo-Gonzalez & Raymond Ritter, 2005. "The EU budget – how much scope for institutional reform?," Public Economics 0509005, EconWPA.
  • Handle: RePEc:wpa:wuwppe:0509005
    Note: Type of Document - pdf; pages: 33
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    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    European Union; EU budget; budget process;

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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