Ideas for Budget and Policy Reform: Reviewing the Debate on Cohesion Policy 2014+

Ideas for Budget and Policy Reform:
Reviewing the Debate on Cohesion Policy 2014+
EXECUTIVE SUMMARY
Over the past year, the debate on the EU budget - and the longer term development of the European Union - has come to life. This paper reviews the evolution of the debate, with respect to the two consultations on the budget and specifically on Cohesion policy.
The Budget Review

This review was launched by the Commission President in September 2007 with a consultation paper described as a ‘unique opportunity’. The review has prompted extensive academic and policy debate on the future political and policy direction of the EU.
Reviewing the main research contributions, the primary conclusion is the need for change. There is general recognition that the structure of the budget does not reflect the EU’s political objectives and policy priorities. In broad terms, the consultation indicates a need for increased spending on the environment, energy and competitiveness, research and knowledge - as well as greater cross-policy coherence in meeting EU goals in these areas - and a reduction or reorientation of CAP spending towards rural development and other contemporary policy objectives.
On the revenue side of the budget, the budget debate has promoted extensive discussion of the own resources of the EU. There is considerable support for some kind of EU tax, but others are strongly opposed on theoretical, empirical and political grounds. While there is a widespread view that correction mechanisms should be avoided, it is also recognised that some method for dealing with Member State concerns on net balances is required.
The budget review has prompted contributions on how to manage change to the budget and EU policies. Many contributors place emphasis on better independent assessment and understanding of the efficiency and effectiveness of policies (notably impact) as part of a more structured and systematic approach to making expenditure decisions.