EU BUDGET – THE POLICY OF SHARING THE CAKE

• Main Authors: Hella GERTH, Luana MARTIN
• Format: Article
• Language: English
• Published: Romanian Academy 2006-06-01
• Series: Revista Romana de Economie
• Subjects: EU Budget; budgetary debtes; equilibrium and efficiency
• Online Access: http://www.revecon.ro/articles/2006-1/2006-1-4.pdf

This paper discusses the EU budget aiming at casting light on the relationship between political and economic matters and on the importance that they function as a mechanism. Somehow the budget could be compared to a barometer showing the political pressure and the level of integration inside the European Union. Discussing the structure of the budget, where the EU money come from and how are the funds distributed afterwards, and also referring to important moments in the historical development of the European Union’s budget, the paper emphasizes the same idea of financial matters strong related to the political choices. It argues also, by describing the complexity of the budgetary procedure and the importance of financial control, that the budget is an important interplay between actors, is an important balance of power trying to reach equilibrium and efficiency. The paper also reviews the main issues of the present budgetary debates, the positions taken by European actors, counting their losses and gains, and to which extent their choices are more a national concern or following the European interest, aiming at presenting the actual state of the European Union taking into account both the economic and the political integration. The budget being one of the key elements forming the structure of the big edifice, the European Union, it is of great importance when discussing budgetary matters to have in mind the present context as a whole, determined by issues like the failure of the summit for setting a new budgetary framework, or the rejection of the European Constitution by the citizens of two of its founding members. Though, it is important when discussing the budget, economical matters to put them in a political context and also to see them in the present context.