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http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1970| Title: | The Redistributive Effects Of The EU Budget: An Analysis And A Proposal Reform |
| Keywords: | European Union Fiscal flows |
| Description: | This paper analyzes the redistributive effects of the EU budget during the period 1986-98, explores the implications of the Berlin budget agreement and advances a proposal for setting member countries' budgetary balances in a manner consistent with a simple equity criterion based on relative income per capita. Using an extension of a standard methodology, we find
that the redistributive impact of the EU budget has been considerable in view of its small size, that it has tended to increase over time, and that it is mostly due to the effects of structural programmes. We also find that, in spite of the relative loss of weight of structural transfers, the expenditure side of the Berlin budget agreement represents a noticeable (but small) improvement over the previous financial perspectives in terms of both its redistributive impact and its horizontal equity properties. Our proposed allocation criterion involves the correction of horizontal inequities while preserving the current degree of redistribution. This
would involve a sizable reallocation of net contributions across rich countries and only a modest reduction in north-south fiscal flows. This paper was written as part of a research project cofinanced by the European Fund for Regional Development and Fundación Caixa Galicia. Additional financial support was provided by the Spanish Ministry of Education and Culture under grants SEC99-1189 and SEC99-0820. |
| URI: | http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1970 |
| Other Identifiers: | http://hdl.handle.net/10261/1970 |
| Appears in Collections: | Digital Csic |
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