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Do Benevolent Aspects Have Room in Explaining EU Budget Receipts?

Author: HEIKKI KAUPPI and MIKA WIDGRÉN
Published in PFM, Vol. 9 No. 4

This paper evaluates the determination of receipts from the EU budget by considering a richer institutional structure than in earlier studies. The member states have self-interested objectives in CM trying to minimize their contributions within the given framework of the EU budget, whereas EP supports benevolent objectives using its competence to decide on non-compulsory expenditure covering structural spending. CM exerts power in the allocation of both compulsory expenditure, mainly consisting of agricultural spending, and in non-compulsory expenditure. The purpose of this paper is not, however, to evaluate EP’s direct influence but rather how the assumed benevolent objectives of EP and income differences turn into member states’ budget receipts in a power politics based model.

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