The European Union Budget after 2013 – Directions of Change in the Light of the Analysis of the Position of the Member States’ Governments

Abstract

The creation of principles of financing the European Union which are to
come into force in 2014 is connected with some serious challenges. Taking
into account the existing differences in the level of economic development
of the present European Union member states, it is essential to acknowledge
the mechanisms of solidarity. There is some concern that in the future that
solidarity will continue to decrease. The establishment of a new source of
individual funds in the form of income from the so-called European tax is
not very probable due to an evident opposition from a big group of countries.
The spending which will certainly cause the biggest controversies among
the member states is the financing of the Common Agricultural Policy and
regional support. An important area for negotiations will also be constituted
by the issue of rebates which benefit the United Kingdom and some other
countries being net payers. The shape of the future European Union budget
will be determined by the integration model which is planned to be practically
implemented. The key issue is whether the future integration model will
be limited to the implementation of ambitious long-term objectives or only
to current intervention activities. The factor that will strongly affect the
negotiations of how to finance the European Union in the period after 2013
is the condition of public finance in the member states, especially those which
are net payers. The global economic crisis caused a considerable increase of
budget deficits and resulted in the rise of public debt. Thus, the possibilities
to increase the Union budget are rather limited.