The European Union Budget, the Balanced Budget Rule and the Development of Common European Policies
ثبت نشده
چکیده
The European Union budget is subject to a strict annual balanced budget rule. Given different types of expenditure within the budget, this rule has most effect on and is most threatened by spending on the Common Agricultural Policy. This article examines the merits of applying a balanced budget rule to the EU budget and explores the links between the budget and the CAP. The presence of the rule also forced the EU to improve its financial management. The 1999 CAP reform is examined. The presence of a pre-agreed spending limit on the CAP forced changes to be made to the initial CAP reform agreement in order to comply with this limit, although political bargaining was critical in shaping the changes. The general perception is that the CAP drives the European budget. The budget, if not driving the CAP, imposes an increasingly tight constraint on its reform.
منابع مشابه
Debt Level and Fiscal Rules in Iran According to Budget Structural Reform
Oil-exporting countries often escalate macroeconomic fluctuations by adopting cyclical fiscal policies. Empirical evidence shows that the main reason of instability in oil-exporting countries is the poor management of oil. In this study, after introducing a small open macroeconomic model with a dual managed floating exchange rate regime and estimating it using quarterly macroeconomic data of Ir...
متن کاملThe Global Health Policies of the EU and its Member States: A Common Vision?
Background This article assesses the global health policies of the European Union (EU) and those of its individual member states. So far EU and public health scholars have paid little heed to this, despite the large budgets involved in this area. While the European Commission has attempted to define the ‘EU role in Global Health’ in 2010, member states are active in the domain of global health ...
متن کاملInvestigate the Effects of Public Expenditure on Macroeconomic Variables under a Balanced Budget Rule in Iran: a DSGE Approach
متن کامل
Unwanted side effects of Baumol's cost disease on a balanced- budget rule
Based on a panel of 24 OECD countries this present paper shows that the total government sector is contracted by Baumol’s cost disease. The most affected government services are education and healthcare. Furthermore, this paper shows that Baumol’s cost disease produces adverse consequences under a balanced budget rule such as a debt brake, which is a key element of the EU Fiscal Compact. Govern...
متن کاملAnalysing the Effect of Financial Development and Symmetric Information on Economic Growth of European Union Members
The relationship between financial development and economic growth is the crucial issues which could grab economists and policy makers' attention to it. Financial market plays an essential role on each economy, because it conducts funds to those individuals or firms which have productive investment opportunities. If the financial system does not perform this role efficiently, the economic effic...
متن کامل