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12 - Policy

Published online by Cambridge University Press:  15 April 2023

Dimitris Ballas
Affiliation:
University of Sheffield
Danny Dorling
Affiliation:
University of Oxford
Benjamin Hennig
Affiliation:
University of Oxford
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Summary

Where does the European Union get its money from‚ and how does it spend it? With an annual budget of over €122bn, the EU is an economic power in its own right, more significant than many countries. So, how do those finances break down?

Rogers, 2012b

As noted in the above quote, the European Union can be seen as an economic power in its own right. However, it is also important to highlight that the total EU budget is very small when compared with the sum of all the national budgets of member states. In 2011 the total EU budget was €140 billion, whereas the total budget of all EU member states was €6,300 billion – 50 times bigger (European Commission, 2014c).

This chapter focuses on current EU member states (at the time of compiling the data for the atlas) and explores the distribution of EU policy and in particular the geographical distribution of the EU budget. The EU budget aims to promote the policy priorities agreed by all member states through a multi-annual spending plan known as the ‘Financial Framework’, which specifies the EU expenditure over a fixed period for specified categories. The last financial framework covered the period 2007–13 and ensured a certain planning security for the main areas of the common political goals of the EU. At the time of writing, tense negotiations are under way for the forthcoming Multiannual Financial Framework 2014–20.

The contributions to the EU budget by each country are based on economic power: each EU member state contributes to the budget a percentage of its value added tax (VAT) receipts and 1% of its gross national income (GNI). But because of various rebates the EU’s overall budget represents approximately 1% of the gross national income of all member states.

The graph here shows the total payments and contributions by country. It demonstrates one other, often less discussed, aspect of the EU: that although some of the wealthier countries pay quite large sums into the EU budget (depending on their GDP) they also receive quite large payments from it. For example, the largest contributors, such as France, Germany and the United Kingdom, are also those in receipt of the largest payments from the EU budget.

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Publisher: Bristol University Press
Print publication year: 2014

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  • Policy
  • Dimitris Ballas, University of Sheffield, Danny Dorling, University of Oxford, Benjamin Hennig, University of Oxford
  • Book: The Social Atlas of Europe
  • Online publication: 15 April 2023
  • Chapter DOI: https://doi.org/10.46692/9781447313557.013
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  • Policy
  • Dimitris Ballas, University of Sheffield, Danny Dorling, University of Oxford, Benjamin Hennig, University of Oxford
  • Book: The Social Atlas of Europe
  • Online publication: 15 April 2023
  • Chapter DOI: https://doi.org/10.46692/9781447313557.013
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Policy
  • Dimitris Ballas, University of Sheffield, Danny Dorling, University of Oxford, Benjamin Hennig, University of Oxford
  • Book: The Social Atlas of Europe
  • Online publication: 15 April 2023
  • Chapter DOI: https://doi.org/10.46692/9781447313557.013
Available formats
×