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Prospects for the EU financial perspective in an age of austerity [WP1089]


We discussed: 

  • How large should the EU Financial Perspective be in the future?
  • Is its expenditure fit to meet 21 st century challenges?
  • Should agriculture and structural funds remain the key components of expenditure, or should more funds be devoted towards new challenges such as action on climate change and needs such as research and development to help retain the EU’s global competitiveness?
  • Should the basis of EU revenue raising be changed?
  • How viable are measures such as a flat EU tax and percentage of GNI?

Key Points:

  • Fundamental change in the next European Union (EU) multi-annual Financial Perspective (budget) is unlikely.
  • The next Financial Perspective is likely to be more of the same and slightly larger in absolute terms.
  • The EU budget is unlikely to be fully fit for 21st century challenges as the preoccupation with net balances and juste retour arguments are likely to continue.
  • The relative size of agriculture in the next budget is likely to decline slightly while expenditure in small areas, such as Research and Development and External Action, are likely to increase.
  • The ‘budget’ should be more flexible to enable the EU to act more effectively and deliver across budget chapters.

Further information

See ‘Prospects for the EU financial perspective in an age of austerity’ report by Maximilian Stern at Foraus

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