2012年-CEPS欧洲政策研究中心_The_EU_Budget_Process_and_International_Trade_Liberalisation_49页_282kb

Summary of "The EU Budget Process and International Trade Liberalisation"

Core Content

This paper explores the relationship between the European Union (EU) budget and international trade liberalisation, with a focus on the implications of the Doha Development Agenda (DDA) negotiations. It outlines how trade policy decisions, particularly those related to agriculture, affect the EU budget and discusses the need for a more responsive and integrated budget structure to address the challenges of globalisation and trade liberalisation.

Main Points

1. The EU Budget and Trade Liberalisation

• The EU budget is not designed to directly address trade issues.
• Historically, it was primarily used for agricultural subsidies and revenue generation through tariffs.
• The budget's main components are agriculture (nearly 50%) and structural funds (around 35%).

2. Impact of WTO Negotiations

• The WTO process, especially the Uruguay Round, has had a profound effect on the Common Agricultural Policy (CAP).
• Tariffs and export subsidies are the primary areas of the EU budget influenced by WTO agreements.
• The Common Customs Tariff (CCT) is a key revenue source, but its impact is limited due to generally low tariff levels on manufactured goods.

3. Effects of DDA on the EU Budget

• A successful DDA would lead to the elimination of export subsidies, resulting in a €4,000 million cost saving.
• Tariff revenues could decrease by approximately €1,000 million, which is 1% of the EU budget.
• The reduction in tariffs may have mixed effects on the EU budget:
  • Some sectors (e.g., meat and vegetables) may suffer due to increased competition.
  • Other sectors may benefit from wider market access.
• The CAP is expected to see direct budget impacts, particularly in the sugar sector, which is a special case due to its unique regulatory framework.

4. Implications for Member States

• The net balance of member states may be affected by budget savings, especially for those relying on export subsidies.
• Hungary, the Netherlands, and Denmark would see a deterioration in net balances due to the loss of export subsidies.
• The UK rebate becomes more burdensome for other member states if the UK’s export subsidies are reduced, as the rebate is not adjusted accordingly.

5. Budget Structure and Policy Reforms

• The EU budget is not well-equipped to address the distributional effects of trade liberalisation.
• The current budget structure is outdated, with a focus on internal market regulation rather than external competitiveness.
• The EU needs a radical rethinking of its budget to align with the Lisbon Strategy and improve Europe’s competitiveness.
• The budget should be restructured to better support human capital development, rural areas, and cohesion policies.

Key Findings

• Agriculture remains the most significant area of the EU budget affected by trade liberalisation.
• The reduction in export subsidies and tariff barriers could lead to budget savings, but the distribution of these savings is a political decision.
• The net balance issue highlights inequities in how member states share the costs and benefits of trade policy.
• The EU budget is not designed to respond to external trade challenges effectively, which is a major concern for the EU's long-term economic and social stability.

Conclusion

The paper concludes that while the direct impact of the DDA on the EU budget is relatively small, the budget's inability to adapt to new trade realities reveals structural weaknesses. It calls for a reform of the budget system to ensure it can support the EU in adapting to globalisation, aging populations, and economic competition. The European Parliament is urged to consider the broader implications of trade liberalisation and to restructure the budget accordingly.