EU budget review – workshops

2. The political economy of EU public finances: designing governance for change

5 February 2009: Berlaymont building

This workshop intends to explore some ways to overcome the current impasse of the EU finances. The workshop takes a closer look at the different options for modifying the existing procedures and creating the incentive structure for change.

The strong status quo bias is one of the main obstacles to aligning the EU budget with the evolving challenges the EU faces. Vested interests and unanimity voting for adopting the multiannual financial framework make change extremely difficult.

The following questions tackle, among other things the status quo bias and serve as a starting point for the workshop:

• How can we best explain the resistance to change the EU budget? Does this resistance reflect uncertainty about the outcome of reform or does it simply mirror the strong status quo bias?
• Are there any viable mechanisms/arrangements that could reduce the status quo bias of the EU budget? Does the current Treaty allow any such arrangements?
• Would new financial instruments addressing evolving policy challenges break the deadlock? Which are the opportunity costs of preserving the current composition of the EU budget?
• Are there any European public goods? If yes, should the EU budget focus only on these?

Session 1 – The Status Quo Bias on the EU Budget and the Potential for Change

• Presentation: "The EU Budget: The Power Politics and the Needs Views Revisited"
  Heikki Kauppi, University of Turku and Mika Widgren, Turku School of Economics
  presentation - background paper
• Discussion: Thomas König, University of Mannheim
• Presentation: "Refocusing the EU Budget – An Institutional View" Charles B. Blankart and Gerrit B. Koester, Humboldt University Berlin
  presentation - background paper
• Discussion: Brigid Laffan, University College Dublin

Session 2 – The EU Budget and Evolving Policy Challenges

• Presentation: "The Economic Rationale for EU Action: What are European Public Goods"
  Fabian Zuleeg, European Policy Centre
  presentation - background paper
• Discussion: Johannes Lindner, European Central Bank
• Presentation: "Fiscal solidarity during exceptional times: What are the options?"
  Daniel Gros, Centre for European Policy Studies
  presentation
• Discussion: Henrik Enderlein, Hertie School of Government

For more info: BEPA Info.