Pasquale D'Apice, 13 September 2016

There has been renewed interest in economic analysis of the EU budget following the Global Crisis. This column presents new calculations of cross-border flows operated through the EU budget and compares them with those estimated for the US. For each euro paid by an average net (EU member state) contributor, approximately 75 cents return through the EU budget, and 25 cents cross a border. At the margin, the US federal budget is less redistributive in normal times, with around 90 cents per dollar returning to the contributing state, but net cross-border fiscal flows in the US increased steeply in the wake of the Global Crisis, financed by federal borrowing.

Mika Widgrén, 23 May 2008

The EU budget is supposed to reflect benevolent principles, but some suspect that baser motives may guide member states bargaining over the allocation. This column summarises evidence demonstrating that power politics play a large role in building the EU budget, while benevolence is rather lacking.

Guido Tabellini, 28 November 2006

This essay, written in November 2006, discusses an accounting trick that allows Italy to apply the cash proceeds of new liabilities to reduce its government deficit subject to the Stability and Growth Pact’s 3% limit.

Events

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