EU budget negotiations in the shadow of the juste retour rule

Renata Grochowska and Katarzyna Kosior

No 252637, Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej from Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

Abstract: This article characterises national preferences of the EU Member States in previous negotiations on the EU Multiannual Financial Framework (MFF) and analyses them in the context of both budget negotiations for the 2021-27 period and the future of the European integration. It has been concluded that the EU Member States preferences concerning the shape and size of the EU budget after 2020 will remain differentiated. The changing balance of payments and receipts to and from the EU budget will determine how the EU Member States assess the need to finance specific measures and actions at the EU level. Recent EU budget beneficiaries, currently on the path to reach the level of wealth of the net payers, will join the group of countries wishing to freeze the EU budget. The worsening budgetary position of many net payers will also probably strengthen their reluctance to continue financing the EU activities. The growing Euroscepticism of European societies will certainly hamper negotiations directed towards increasing the effectiveness of the EU budget. As a result, political conditions and social preferences will build up the pressure to reduce the EU budget in the future. Also, it is hard to expect any significant transformation in the structure of the EU spending in the years to come. On the one hand, Member States recognise the importance of new funding priorities (e.g. to dealwith new threats), on the other, they are against increasing the EU budget. Therefore, the scenario of financing new priorities, basically from national budgets, is quite possible. This, in the longer term, will negatively affect the position and role of the EU in the world.

Keywords: Financial Economics; International Development; International Relations/Trade (search for similar items in EconPapers)
Pages: 20
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iafepa:252637

DOI: 10.22004/ag.econ.252637

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