Criticized for largely serving “redistribution purposes”
The EU budget has repeatedly been criticized for largely serving “redistribution
purposes” of the EU member states8 rather than really focusing on maximizing
added value on the European level.
Additionally, the effectiveness and
efficiency of EU spending through agricultural and regional policy, which
consume a lion’s share of the common funds, often has been questioned, also
with a view to the principle of subsidiarity, prudent allocation of resources from a
centralized budget, spending errors, as well as cases of fraud and corruption
related to EU-funded projects, investigated by the EU’s anti-fraud watchdog
OLAF.
The Commission’s aim to “modernize” the budget and reset the focus in joint
spending on tasks where “European added value” can be maximized, such as in
border management and European defence is understandable. However, hopes
in Brussels to use the Brexit dynamics to overhaul EU finances and spending
priorities might rather be disappointed. Risks appear high that also this time,
distributional forces will dominate budget negotiations, as has been illustrated
by rather “protectionist” statements from member states regarding their stakes
in regional and agricultural policies.
EU Forecast
euf:ba18h:175/nws-01