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12.11.2009 Studies
 

A Study on EU Spending

ECORYS Nederland BV, Netherlands Bureau for Economic Policy Analysis (CPB) and Institute for Economic Research (IFO), 2009

Content

  • Assessment of all EU expenditures based on a broad list of criteria (including political considerations, such as the influence of special interest groups).

Findings

  • The EU should not finance income support, such as the Single Farm Payment (no reason for the EU to support farm income but increased risk of undue influence of special interest groups through centralization at EU level).
  • The EU should finance second-pillar programs more selectively (only where cross-border externalities exist - this excludes notably programs for rural development and farm competitiveness) and at a lower rate compared to member state contributions.

Comment

  • If the same criteria are applied to assess the CAP and all other EU spending items, the unreason to pour 40% of the EU budget on agriculture is striking