PRINCIPLES OF THE EU BUDGETARY STRUCTURE

By

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

Declaration

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of “EU budgetary principles” in a holistic context. The main focus of the research is on “EU” and its relation with “budgetary principles”. The research also analyzes many aspects of “principles of budgetary principles” and tries to gauge its effect on “EU budget”. Finally the research describes various factors which are responsible for “EU budget”.

Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the study1

Research Aims and Objectives1

Significance of the Study2

Research Question2

CHAPTER 2: LITERATURE REVIEW3

The EU budget3

The EU budget procedure4

The annual procedure4

The multi annual procedure8

The EU Budget Structure9

Income9

Own Resources9

Traditional 'Own Resources'10

Value Added Tax10

Gross National Income11

New Own Resources11

Development of Income Streams12

Expenditure13

Sustainable growth13

Management and preservation of natural resources13

Citizenship, freedom, security and justice14

The EU as global player14

Administration and Compensations14

Relative weight of expenditure by policy area14

Relative weight of expenditure over time16

Who pays and who gains17

Flows from EU to MS and from MS to EU17

Different ways of measuring20

Corrective measures21

How big is the budget?22

Dynamic Change in the EU Budget22

The introduction of the UK rebate25

The problem of budgetary imbalances29

Structure of Capital31

Maintaining the current funding system unchanged31

A funding system based solely on GNI31

A funding system based on fiscal own resources32

Funding Towards a System Based On Contributions33

Increase of tax-based own resources33

CHAPTER 3: METHODOLOGY35

Introduction35

Philosophical Framework or Paradigm36

Social Constructivist Theory40

Phenomenology42

Rationale for a Qualitative Study44

Rationale for a Phenomenological Study45

Role of the Researcher48

CHAPTER 4: DISCUSSION AND ANALYSIS49

Principles for a value and rights based European budget for the future49

Principle 149

Principle 250

Principle 350

Principle 451

Principle 552

Principle 652

Principle 753

Principle 854

Principle 955

Problems with EU budget55

The EU budget is too big55

The EU-budget keeps growing56

The common budget lacks common values56

Unnecessary, distortionary spending items are many56

Last minute items more important than politically correct ones56

The EU-empire of bureaucracy shields itself from the crisis57

More commitments pushed to the future decrease flexibility57

Instead of the past, let us concentrate on the future57

Instead of crisis management, improve competitiveness58

Socialist planning without much improvement in efficiency58

CHAPTER 5: CONCLUSION59

REFERENCES63

Chapter 1: Introduction

Background of the study

The list of all expenses and revenues of the economy is called the budget. But budget can not be formed overnight. Rather budgets need to follow a certain procedure. In this research, the principles on the European Union budget is based are discussed in detail.

Research Aims and Objectives

The main objective of this work is to establish the content of the principles of the EU budgetary structure and inter alia determine and discuss possible problematic aspects of their implementation.

In order to achieve the objectives indicated above such tasks are formulated:

To analyse the EU primary and secondary legal rules established for the principles of the EU budgetary structure, giving considerable attention to Council ...