How to Finance Eastern Enlargement of the EU

Christian Weise

No 287, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper analyses the consequences of the planned enlargement on the EU budget for the years 2007 and 2013. It concentrates on the EU's Common Agricultural Policy and Structural Policy and calculates the possible fiscal consequences of enlarging the EU for various policy scenarios. Enlarging the EU could be financed without overstepping the current upper limit for the EU budget, but it increases the pressure for EU policy reform. The main aim of such reforms is to reduce income support in agricultural policy and to concentrate structural policy on needy member states. These reforms would lead to a distribution of net burdens which was more strongly orientated according to the relative income of EU members. The burden for net contributors would remain under control, financial support for needy member states in the present EU would continue and new members would receive equal treatment from expenditure-related programmes.

Keywords: Enlargement; EU Budget; reform scenarios (search for similar items in EconPapers)
JEL-codes: D78 F2 H11 H87 P16 (search for similar items in EconPapers)
Pages: 18 p.
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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