theorie und politik der europäischen integration prof. dr. herbert brücker timo baas lecture 2...
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Theorie und Politik der Europäischen Integration
Prof. Dr. Herbert BrückerTimo Baas
Lecture 2
Facts, Institutions and Budget
Theory and Politics of European Integration
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Last Lecture
• Course Overview
• EU History· Why European Integration: Preventing another war in Europe· Two competing concepts: federalism vs. intergovernmentalism· Links between deeper integration and expansion· Europessimism· Single Market Programme 1992· Collapse of Communism· Eastern enlargement and ‘finalisation’ of Europe· Leftovers:· German unifcation, Maastricht and EMU· EU Treaties and EU Constitution
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Today's Lecture - Overview
• Leftovers from last session
• Facts, EU Institutions, EU Budget
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Today's Reading
• EU History, Institutions, Decision Making and the Budget· Baldwin & Wyplosz (2006) “The Economics of European
Integration”, McGraw-Hill, Ch 2.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• Pending 1990 unification of Germany opens door to a ‘grand bargain’ (Mitterrand, Kohl).• Germany gives up DM for European Monetary Union & East
Germany joins the EU without negotiation.• Jacques Delors proposes 2nd radical increase in
European economic integration. • the formation of a monetary union.• Idea championed by French President Francois Mitterrand and
German Chancellor Helmut Kohl.• Maastricht Treaty, signed 1992
• a monetary union by 1999, single currency by 2002.• Also, sets up EU’s ‘three pillar’ structure to reduce EU’s
‘competency creep;’• ERM exchange rate crises, 1992-1994.
German unification and Maastricht
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• EU Enlargement required from the EU to reform institutions
• Four ties:• Amsterdam Treaty 1997• Nice Treaty 2000• Draft Constitutional Treaty, 2003• Constitutional Treaty, June 2004• Lisbon Treaty• What comes after failure of Lisbon Treaty in Irish
referendum?
Was the EU prepared for Enlargement?
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• Failed to reform main institutions
• Tieded up for the Maastricht Treaty• more social policy• more rights for the Parliament • Flexible integration, more room for national
cooperations
• Amsterdam “Leftovers”• Voting rules in the Council of Ministers• Number of Commissioners• Extension of issue of majority voting
Amsterdam Treaty 1997
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• Reform of main institutions, but poorly done• Council voting rules highly complex and reduce EU’s
ability to act with more members• No important extension of majority voting• Make shift solution for Commissioners• No reform of decision making in ECB
• Generally viewed as a failure• Main changes re-visited in draft Constitutional Treaty, 2003
Nice Treaty
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• Reform of decision making rules• More rights for Parliament• Slightly more majority voting
• Inclusion of Charter of Human Rights
• A lot of other things, which a Constitutional Treaty not necessarily requires• Many gestures (social rights etc.)• Moves towards more coherent foreign policies, increased
competencies of EC• Many de facto points turned into de jure
Constitutional Treaty
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• Failure of Constitution in referendum (FR, NL)• Failure of Lisbon Treaty in Irish referendum• Declining approval rates of EU in all member states• Increasing disagreement about core EU values in NMS,
particularly in Poland, Czech Republic and Hungary• Increasing tensions between federalistic and
intergovernmental approach • Increasing tensions about goals of foreign policies• Disagreement on accession of candidate countries,
particularly Turkey• ...
Outlook: new EU pessimism?
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
• Facts• EU Law• The “Big 5” Institutions• Legislative process• Budget
Today’s Lecture
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
A heterogeneous group: per capita GNP and population, 2006
0.0
10,000.0
20,000.0
30,000.0
40,000.0
50,000.0
60,000.0
70,000.0
0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0
population in millions
PPP
GN
P pe
r cap
ita in
USD
LX
IE
ATDKNLBE UK FISE FR DE IT
SPGRPT
CYSLCZHUSVK
PL LV
ROBU
CRORU SB TK MK
BO UKR ALB
EU-15 NMS-12 Future Members?
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Also in absolute size …
B+W Fig. 2.2
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Is heterogeneity a problem?
• How to device institutions that ensure the rights of small countries
• Why then should big countries surrender some powers• EU a consensus driven enterprise • Mutual benefits … find win-win situations … may stem from
trade
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Facts: EU15’s Trade Pattern
B+W t. 2.2
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
EU trade patterns
• EU-27 members are all comparatively open economies
· openness and size · figures for Japan and the US are 10 per cent and 8 per cent
respectively.• EU15 market is very important for all EU-27
· share of exports going to the EU15 ranges between 50 per cent to 80 per cent.
• The EU trades mainly with Europe, especially with itself
· about two-thirds of EU exports and imports are to or from other Western European nations
· the EU’s exports to North America amount to only 10 per cent of its exports
· Asia’s share is only 8 per cent • About 80 per cent of EU exports consist of
industrial goods· ‘intraindustry’ trade
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
The EU Court created by the Treaty of Rome:• court then established the Community’s legal system
EC law was established on the basis of:• the EU institutions ensuring that actions by the EC take
account of all members’ interests, i.e. the Community’s interest
• the transfer of national power to the Community. • New Treaty may replace this as the source of EU law.
Law – sources of
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Autonomy:• system is independent of members’ legal orders.
Direct Applicability:• has the force of law in member states so that Community law
can be fully and uniformly applicable throughout the EU. Primacy of Community law:
• community law has the final say, e.g. highest French court can be overruled on a matters pertaining to intra-EC imports
Primary legislation:• treaties.
Secondary legislation:• collection of decisions made by EU institutions.
Law: Key principles
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions
There are dozens of EU institutions –but only five are really important:• European Council • Council of Ministers • Commission• Parliament• EU Court.
Others matter in specific areas or at particular moments.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Council
• Consists of the leader (prime minister or president) of each EU member plus the President of the European Commission.
• By far the most influential institution: • its members are the leaders of their respective nations.
• Provides broad guidelines for EU policy.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Council
Thrashes out compromises on sensitive issues:· reforms of the major EU policies· the EU’s multiyear budget plan· Treaty changes· final terms of enlargements, etc.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Council
Meets at least twice a year (June and December):• meets more frequently when the EU faces major political
problems• highest profile meetings at the end of each six-month
term of the EU Presidency • these meetings are important political and media events
· determine all of the EU’s major moves
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Council
• most important decisions of each Presidency are contained in a document, known as the ‘Conclusions of the Presidency’, or just the ‘Conclusions.
• Strangely enough, the European Council has no formal role in EU law-making:• its political decisions must be translated into action via
Treaty changes or secondary legislation.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions
There are dozens of EU institutions –but only five are really important:• European Council • Council of Ministers • Commission• Parliament• EU Court.
Others matter in specific areas or at particular moments.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: Council of Ministers
Usually called by old name Council of Ministers (formal name is now ‘Council of the EU’).
Consists representatives at ministerial level from each Member State, empowered to commit his/her Government:
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: Council of Ministers
• typically minister for relevant area:· e.g finance ministers on budget issues · confusingly, Council uses different names according to
the issue discussed. – Famous ones include EcoFin (for financial and
budget issues), the Agriculture Council (for CAP issues), General Affairs Council (foreign policy issues).
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: Council of Ministers
• Is EU’s main decision-making body (almost every EU legislation must be approved by it).
• Main task to adopt new EU laws:• measures necessary to implement the Treaties• also measures concerning the EU budget and
international agreements involving the EU • is also supposed to coordinate the general economic
policies of the Member States in the context of the Economic and Monetary Union (EMU), e.g. famous 3 per cent deficit rule.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Council/Council of ministers: Qualified Majority Voting (QMV)
QMV is complex and is changing.Three sets of rules:
• Procedure that applies until mid 2004:· basic form unchanged since 1958 Treaty of Rome.
• Procedure post-2004 (from Nice Treaty) unless Constitutional Treaty supersedes them:
· political agreement in Nice Treaty; implemented by Accession Treaty for 2004 enlargement.
• Procedure from Constitutional Treaty· draft endorsed by European Council at June 2003
meeting.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
QMV: Nice/Accession Treaty Reforms (big countries gain)
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
190%190%190%190%
238%238%
160%140%140%140%140%140%
150%150%
133%133%133%133%133%
33%33%33%
100%100%
50%
GermanyUnitedKingdo
FranceItaly
SpainPoland
NetherlandsGreece
CzechRepublicBelgiumHungaryPortugalSwedenAustria
SlovakiaDenmark
FinlandIreland
LithuaniaLatvia
SloveniaEstoniaCyprus
LuxembourgMalta
Consider percentage increase by member:• members ranked by
population.
Who win?Who lose?
QMV: Nice/Accession Treaty Reforms
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Power implications:• big nations gain a lot (except Spain and Portugal who lose a lot)• intermediate-sized nations lose• tiny nations gain slightly.
change in power shares: draft Constitution versus Nice
-2% 0% 2% 4% 6%
GermanyUK
FranceItaly
SpainPoland
RomaniaNetherla
GreeceCzech
Belgium HungaryPortugalSwedenBulgariaAustria
SlovakiaDenmarFinlandIreland
LithuaniaLatvia
SloveniaEstoniaCyprus
LuxembMalta
QMV: draft Constitutional Treaty
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions
There are dozens of EU institutions –but only five are really important:• European Council • Council of Ministers • Commission• Parliament• EU Court.
Others matter in specific areas or at particular moments.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: The Commission
Has three main roles:• propose legislation to the Council and Parliament• to administer and implement EU policies• to provide surveillance and enforcement of EU law
(‘guardian of the Treaties’) • it also represents the EU at some international
negotiations.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Commissioners, Commission’s Composition
Before the 2004 enlargement:• one Commissioner from each member:
· extra Commissioner from the Big-Five (Germany, UK, France, Italy and Spain in the EU15)
· this includes the President (Romano Prodi up to 2005), two Vice-Presidents and 17 other Commissioners.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Commissioners, Commission’s Composition
Under Nice Treaty each member in EU25 has one Commissioner
• Current president: BarrosoDraft Constitution, only 15 Commissioners:
• rotating evenly among all members• would have non-voting Commissioners from other
nations (IGC likely to change this).
Commissioners are chosen by their own national governments:· subject to political agreement by other members · Commission, the Commission President individually,
approved by Parliament.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Commissioners, Commission’s Composition
Each Commissioner in charge of a specific area of EU policy:• Directorate-Generals (DGs).
Executive powers• Commission executive in all of the EU’s endeavours• power most obvious in competition policy and trade
policy.Manage the EU budget, subject to EU Court of Auditors. Decision making:
• decides on basis of a simple majority, if vote taken • almost all decisions on consensus basis.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions
There are dozens of EU institutions –but only five are really important:• European Council • Council of Ministers • Commission• Parliament• EU Court.
Others matter in specific areas or at particular moments.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Parliament
Two main tasks:• oversees EU institutions, especially Commission• Has to approve Commission • it shares legislative powers, including budgetary power,
with the Council and the Commission.• Traditional problem … democratic deficit
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions
There are dozens of EU institutions –but only five are really important:• European Council • Council of Ministers • Commission• Parliament• EU Court
Others matter in specific areas or at particular moments.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Court of Justice
• EU laws and decisions open to interpretation that lead to disputes that cannot be settled by negotiation:
• Court settles disputes, especially disputes between Member States, between the EU and Member States, between EU institutions, and between individuals and the EU.
• EU Court’s supranational power highly unusual in international organisations. (very influential)
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Institutions: European Court of Justice
• As a result of this power, the Court has had a major impact on European integration.
· 1964 judgment established EC law as an independent legal system that takes precedence over national laws in EC matters
· 1963 ruling established the principle that EC law was directly applicable in the courts of the members.
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
The Budget
The EU Budget
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
The Budget: Expenditure
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Evolution of Spending Priorities
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Evolution of Spending, Level
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Funding of EU Budget
EU’s budget must balance every year.Financing sources: four main types:
• Tariff revenue – common external tariff• ‘Agricultural levies’ (tariffs on agricultural goods)• ‘VAT resource’ (like a 1 per cent value added tax – reality
is complex) • GNP based (tax paid by members based on their GNP).
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Evolution of Funding Sources
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Contribution vs. GDP, 1999, 2000
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Contribution vs GDP, 1999, 2000
• Percentage of GDP per member is approximately 1 per cent regardless of per-capita income.
• EU contributions are not ‘progressive’, e.g. richest nation, (L) pays less of its GDP than the poorest nation (P).
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
Net Contribution by Member
Theory and Politics of European Integration Lecture 2 Institutions
Prof. Dr. Herbert BrückerLehrstuhl für Volkswirtschaftslehre, insbesondere Integration Europäischer ArbeitsmärkteUniversität Bamberg | [email protected] | www.uni-bamberg.de/sowi/bruecker
NEXT LECTURE
• October 30• EU Decision Making• Reading:
• Baldwin & Wyplosz (2006) “The Economics of European Integration”, McGraw-Hill, Ch 3.