EU budget reform [What Think Tanks are thinking]

A long-running discussion on reforming the European Union's budget gained momentum when the High-Level Group on Own Resources, led by former Italian Prime Minister Mario Monti, presented its report in January 2017.

The report proposes simpler methods for funding the EU, to make it less reliant on direct contributions from Member States, and recommends that spending be focused on areas where the highest European added value can be achieved, now, for example migration and security emergencies.

The report, entitled 'Future financing of the EU', lists and examines several options for new own resources, such as a reformed VAT-linked resource, an EU corporate tax, a financial transaction tax or taxes linked to efforts to fight climate change. It also proposes to explore other revenue sources stemming directly from the EU policies and programmes. The report will be taken into consideration by the European Commission and EU Member States when they work on the EU's next long-term budget after 2020.

This note offers links to reports and commentaries from some major international think tanks and research institutes on the EU budget. Some papers also discuss whether the euro area should have its own, dedicated budget.

Compiler: Marcin Grajewski