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Economics - European Integration | Reform Options for the EU Own Resources System

Reform Options for the EU Own Resources System

Series: ZEW Economic Studies, Vol. 40

Heinemann, Friedrich, Mohl, Philipp, Osterloh, Steffen

2008

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This study develops a reform proposal for the future revenue system of the EU budget. The findings strongly reject the idea that a reform based on an EU tax-based own resource would remedy current problems.

Against the background of the status quo analysis the authors present a reform model which includes the complete phasing out of the VAT resource, a financing of the budget completely on the basis of the GNI resource and a generalised but limited correction mechanism (GLCM). The GLCM would make a clear distinction between policies having an intentional distributive effect or not. A further element of the reform proposal is a move towards a stronger financial contribution of regions to EU spending.

Content Level » Research

Keywords » EU budget - GLCM - Revenue System

Related subjects » Economic Policy - European Integration - Public Finance

Table of contents 

Criteria for a Fair and Efficient Own Resources System.- Assessing the Status Quo.- Background Analyses.- Reform Approaches.- A Reform Proposal.- Final Remarks.

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