Performance of the EU Budget and Implications for European Added - PowerPoint PPT Presentation

Ifo Institute Ifo Institute Performance of the EU Budget and Implications for European Added Value Clemens Fuest EU Budget Focused on Results, Brussels, September 27 2016

Ifo Institute 1. The current EU Budget focuses too little on projects which generate European added value; parts of the EU budget do generate positive added value but others do not, some may even generate negative added value. 2. This cannot be changed by reforming the revenue side of the budget. 3. We need reforms on the expenditure side of the budget, in particular in the budgetary process.

Ifo Institute Examples of projects where EU involvement very likely yields positive added value • Policies in the areas of internal and external security policy, transeuropean networks, migration …. • Regional and structural policies in poor member states • Example: Modernisation of public transport in the city of Varna, Bulgaria (38.5 Mill Euros)

Ifo Institute Examples of projects where EU involvement very likely yields negative added value • 1,5 Mill Euros for the building of a visitor centre at Kalkriese Germany (Historic Battlefield Varus vs Arminius) • Renovation of a town square/neighbourhood centres in the North of Dortmund (10 Mill Euros) • Transformation of a public bath in Pforzheim into offices (3,2 Mill Euros) • EU CAP?

Ifo Institute How can this be changed? • Higher national cofinancing rates, differentiation according to country • Pre-defined net balances (countries cannot increase their net balance if they attract more projects with local benefit only) • Budgetary Process: Allocate larger share of the budget to EAV policies;

Ifo Institute How can this be changed? • Policy Experiment: Let the member states determine the level of spending and let the EP determine the structure; • Evaluation ex post: Rigorous and independent evaluation with up to date methods

Ifo Institute Thank you very much!