The budgetary implication of the European Union's May 2004 enlargement

Résumé du document

On 1 May 2004 Europe celebrates the entrance of ten new members in the European Union but behind the fireworks and the celebrations, Brussels has to adapt itself to this new generation of the European project. One of the most important points is the budgetary issue. History has shown that the budget is a source of tension between the members and everybody keeps in mind the 1965 crisis when De Gaulle withdrew France from its participation in the work of the Council of the Ministers in protest at a proposal from the commission concerning the financing of the Community's budget (George & Bache, 2000). The budget of the European Union finances the operations of the EU institution and the EU policies. It is defined by an agreement between all the member states. The expenditures are voted on by the parliament and the Council according to the draft budget submitted by the Commission.

Extraits

[...] Conclusion When the ten poor newcomers arrived in the community, the European Union was in a very good economic situation. Everybody hesitated but nobody was really frightened (except maybe the net beneficiaries which knew that they would have less money). But according to what we have seen previously the EU was not really prepared to such a change. Brussels worked on an integration plan for only six countries and modified it one year before the enlargement. The European authorities only looked at the potential growth of these countries but did not realize their huge needs (maybe because of the pre-adhesion funds). [...]

[...] It appears that it will be more and more difficult to find a consensus as for the budgetary issues and the question of the reform of the institution is more than ever current. The budget 2007-2013 has been signed by all the member states but we know that it is not definitive. Nevertheless The European Union has chosen a long-term view. By developing Eastern Europe the Union makes sure of sustainable growth and a rise of its means to compete with other great economies. Bibliography S. George, I. [...]

[...] To come back on the budgetary side, the European Union counts on the principle of leverage which could profit with the member states. Indeed the European subsidies can represent for these countries of their Gross National Income and so can boost the investment. These subsidies come from the structural funds which know a real success from the entrance of Spain and Portugal in 1986 to the May 2004 enlargement. The European Social Fund and the European Regional Development Fund are particularly active in the financing of the last enlargement. [...]

[...] Bache Oxford, Politics in the European Union Newspaper Problèmes Economiques, 23rd November 2005, Dossier: les defis d'une Europe élargie Financial programming and budget Online: http://ec.europa.eu/budget/index_en.htm [Accessed: 05.10 .2006] Council of the European Union Conclusions of the Berlin European Council: extract from Agenda 2000 Online: http://www.ena.lu/mce.cfm [Accessed: 16.10 .2006] M. Walker The Guardian, Blair fight for 'not a euro less' in rebate Online: http://www.ena.lu/mce.cfm [Accessed: 16.10 .2006] Commission of the European Communities Commission report on the operation of the own resources system Online: http://www.ena.lu/mce.cfm [Accessed: 25.10 .2006] P. [...]

[...] The expenditures are voted by the parliament and the Council according to the draft budget submitted by the Commission. The budget allows the European Union to finance its activities, its programs and its projects concerned with its different policies in the respect of the economic guidelines. Most of the European revenues come from the resource based on the Gross National Income ( rate). The EU is confronted with a lot of economic and social problems because of the May 2004 enlargement. [...]