Abstract
This paper argues that overcoming the imbalances and inequalities between
Member States is a public good for the European Union as a whole. The overcoming of
inequalities between Member States will result in reducing the economic and social inequalities
within Member States (not vice versa) and will lead to sustained economic growth through the
increase of demand and consumption and thus boost the wellbeing of the citizens of the Union as
a whole. It is also argued that the overcoming of the inequalities between Member States is only
possible through a targeted reform of EU’s economic policies. In this perspective, some of the
proposals on the future of the EU are analysed in terms of their impact on existing inequalities in
the EU. The role of the policy of economic, social and territorial cohesion is highlighted as the
main, and so far the most effective, instrument for overcoming economic imbalances and
inequalities in the EU. The paper proposes a reform of secondary legislation on cohesion and
other EU internal policies with redistributive effects which involves a change of paradigm so as
to achieve solidarity through automatically applicable legal mechanisms rather than through
bargaining between Member States or discretionary decisions by executive or expert bodies – as
an expression of the rule of law and not as governance through conditionalities and sanctions.
More specifically, the paper proposes a reform of the system of EU's own resources by
introducing progressivity, with Member States’ GNI contributions increasing or falling
according to a coefficient reflecting the deviations from EU average values for GNI per capita,
employment and trade balance for each Member State. Similarly, changes are proposed for the
principles of financing and co-financing of cohesion and other policies with redistributive
effects, with deviations from EU average values as basis for progressivity in the co-funding of
programmes by the Member States concerned. It is suggested that the basic principles and
formulas for such reforms should be agreed before work on the preparation of the next
Multiannual Financial Framework begins
Member States is a public good for the European Union as a whole. The overcoming of
inequalities between Member States will result in reducing the economic and social inequalities
within Member States (not vice versa) and will lead to sustained economic growth through the
increase of demand and consumption and thus boost the wellbeing of the citizens of the Union as
a whole. It is also argued that the overcoming of the inequalities between Member States is only
possible through a targeted reform of EU’s economic policies. In this perspective, some of the
proposals on the future of the EU are analysed in terms of their impact on existing inequalities in
the EU. The role of the policy of economic, social and territorial cohesion is highlighted as the
main, and so far the most effective, instrument for overcoming economic imbalances and
inequalities in the EU. The paper proposes a reform of secondary legislation on cohesion and
other EU internal policies with redistributive effects which involves a change of paradigm so as
to achieve solidarity through automatically applicable legal mechanisms rather than through
bargaining between Member States or discretionary decisions by executive or expert bodies – as
an expression of the rule of law and not as governance through conditionalities and sanctions.
More specifically, the paper proposes a reform of the system of EU's own resources by
introducing progressivity, with Member States’ GNI contributions increasing or falling
according to a coefficient reflecting the deviations from EU average values for GNI per capita,
employment and trade balance for each Member State. Similarly, changes are proposed for the
principles of financing and co-financing of cohesion and other policies with redistributive
effects, with deviations from EU average values as basis for progressivity in the co-funding of
programmes by the Member States concerned. It is suggested that the basic principles and
formulas for such reforms should be agreed before work on the preparation of the next
Multiannual Financial Framework begins
| Original language | English |
|---|---|
| Title of host publication | The EU beyond 2020: in Search of Identity, Sustainability and Growth |
| Subtitle of host publication | Bulgarian European Studies Association Annual conference, 26 October 2017 |
| Place of Publication | Sofia |
| Pages | 70-79 |
| Number of pages | 10 |
| ISBN (Electronic) | ISBN 978-619-90953-0-0 |
| Publication status | Published - 24 Oct 2017 |
Keywords
- future of the EU, public goods European Union, EU financing, EU own resources, GNI based own resources, EU cohesion policy, solidarity in the EU, inequalities in the EU, redistribution Europe, reflection papers future of Europe, Multiannual Financial Framework 2021