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

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Performance of the EU Budget and Implications for European Added Value

Clemens Fuest

EU Budget Focused on Results, Brussels, September 27 2016

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• 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.

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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
• f Varna, Bulgaria (38.5 Mill Euros)

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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
• ffices (3,2 Mill Euros)
• EU CAP?

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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;

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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

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Thank you very much!