Report
European budget : the poisonous budget rebate debate
“Net balance” calculations have become a central issue in the affairs of the European Union. The author of this study reveals just how fragile, volatire and even meaningless the figures can be.
FOREWORD BY PASCAL LAMY.
The financial negotiations that have just ended in stalemate over the forthcoming European medium-term perspectives for the period 2007-2013 have revealed how important “net national budgetary balances” have become in determining member states’ negotiating stances on issues such as, for example, the British cheque. In the Netherlands, opponents of the Constitutional Treaty successfully brandished the spectre of the country’s excessively large “net contribution payment”, Sweden, Spain and even Finland have also been struck by this contagious disease, judging from the recent stiffening of their negotiating positions. And that without referring to the case of several new member states whose eyes are riveted to these figures. “Net balance” calculations have thus become a central issue in the affairs of the European Union. Yet on closer inspection the figures suffer from crippling deficiencies, which should rule out their use except in marginal cases and even then only it they are handled with the greatest care.
Such is the message conveyed by this study, which Notre Europe commissioned from Jacques Le Cacheux, the eminent specialist in European Community public finances. The author’s close examination of the underlying budgetary, economic and political basis of net balance calculations reveals just how fragile, volatile and even meaningless the figures can be. As readers, we cannot fail to share the author’s doubts after his exposition. But why has the unjustified use of these figures spread to the extent that they now systematically undermine discussions and negotiations which should be focusing instead on the medium-term funding allocations to Community policies and the fairest way of contributing financially to them? The answer to this question lies in the enduring fortunes of an idea that is as appealing as it is erroneous: the concept of a “fair return”. It purports to show that European construction is a zero sum game in which monies “paid” or “received” by member countries should balance each other out when weighed on the Budget scales. With this new study by Jacques Le Cacheux, Notre Europe has, I hope, taken another step towards fulfilling its mission of promoting continued European integration on intellectually solid ground, putting setbacks and crises behind it and rejecting the easy options of illusions and mystification. Thanks to this work we now know that net balances belong to the realm of illusion!
SUR LE MÊME THÈME
ON THE SAME THEME
PUBLICATIONS
How stringent would the new Stability and Growth Pact be? And for who?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/decryptagebleu.png)
The tools for protecting the EU budget from breaches of the rule of law
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/autredocumentbleu.png)
Macro-economic impact of the EU Recovery Funds
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/autredocumentbleu.png)
MÉDIAS
MEDIAS
Peut-on parvenir à une souveraineté économique européenne?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/podcastbleu.png)
FRANCE : L’UNION DES INDUSTRIES UTILISATRICES D’ÉNERGIE (UNIDEN) APPELLE AU RATIONNEMENT
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/articlebleu.png)
Le nouveau «plan de résilience» teste la solidarité européenne
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/articlebleu.png)
ÉVÉNEMENTS
EVENTS
Legitimacy Crisis and Autocratic Legalism: The case of the EU Budget
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Euroquestions | European Recovery : from planning to implementation
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Euroquestion | Quelle gestion de l’endettement public à la suite du Covid ?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Euroquestions | The ongoing negotiations on the next Multiannual Financial Framework (MFF) and the European Recovery Plan: the state of play [Traduction simultanée vers le français disponible]
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Wébinaire | Le Parlement européen, acteur de la réponse à la crise du Covid-19
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Day of Progressive Economic Policy
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Webinar | The day after the Eurogroup Meeting : outcomes & opportunities
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Académie Notre Europe n°5 – Social Europe and Budget
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
EU Budget 2021-27 : Challenges and opportunities
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Florence, 17 October 2019 – The MFF and EU Policie 2021-2027
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 16th October 2019 – Three solutions to finance the Green Deal
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Paris, 12 April 2019 – Session no.6 of the Académie Notre Europe: economic and monetary Union
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Brussels, 22 February 2019 – Post-Brexit EU budget: will it meet the challenge of the 21st century?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
11 octobre 2018 – La montée des banques promotionnelles en Europe contemporaine: potentiels et pièges
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 9 October 2018 – What can NPBIs bring to the table for territorial investment?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Strasbourg, 3 October 2018 – Presentation of the report “Making better use of public funding: The role of NPBIs in the next EU budget”
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Paris, 18 September 2018 – Towards a Juncker Plan closer to the territories?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 12 June 2018 – Hearing by the Special Rapporteur on Budget for European affairs of the French National Assembly
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 6 June 2018 – What territorial cohesion to build in Europe?
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/evenementbleu.png)
Brussels, 6 June 2018 – Cohesion Policy and the new MFF
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 28 May 2018 – Budget meetings: the new EU financial framework
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Budapest, 24 May 2018 – The Money Trail to Europe’s Future: the Multi-Annual Financial Framework and the EU’s priorities post-2020
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Nicosia, 16 March 2018 – The political landscape of EMU reform
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Sofia, 9 March 2018 – The future of the EU budget
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 22 November 2017 – The future of the European budget
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Brussels, 25 September 2017 – Conference on the Future of EU Finances
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)
Paris, 21 July 2017 – The future of the Eurozone and the Multiannual Financial Framework
![](https://institutdelors.eu/wp-content/themes/Avada-Child-Theme/images/interventionblanc.png)