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The net operating balances or the "Juste retour" approach

19-02-2020

Operating budgetary balances (OBBs) are calculated and published annually by the European Commission as an attempt to document the differences between a Member State’s financial contribution to and its allocated expenditure from the EU budget. OBBs have become a highly politicised concept, with substantial shortcomings. Calculating Operating budgetary balances (OBB) is purely an accounting exercise. This is most convincingly demonstrated by the zero-sum assumption inherent in the Operating budgetary ...

Operating budgetary balances (OBBs) are calculated and published annually by the European Commission as an attempt to document the differences between a Member State’s financial contribution to and its allocated expenditure from the EU budget. OBBs have become a highly politicised concept, with substantial shortcomings. Calculating Operating budgetary balances (OBB) is purely an accounting exercise. This is most convincingly demonstrated by the zero-sum assumption inherent in the Operating budgetary balances concept, as a positive OBB of one country must necessarily be offset by a negative OBB of equal size by another Member State. Evidently, such a perspective stands in sharp contrast with the idea of an EU budget that is not primarily meant as a system of fiscal redistribution, but rather as a means to generate European added value..

Ulkopuolinen laatija

Zareh Astryan, Annika Havlik, Friedrich heinermann, Justus Nover, Marta Pilati

Net operating balances indicator: A distorted indicator of a Member's benefit from the EU budget

19-02-2020

Operating budgetary balance (OBB) calculations imply that EU spending is a zero-sum game. This feature is inconsistent with the main argument that EU spending creates European added value. Thus, taking simple net operating balances as an indicator of a Member State’s ‘net benefit’ from the Union’s fiscal activities can lead to misleading results, as demonstrated in the following points of argument.

Operating budgetary balance (OBB) calculations imply that EU spending is a zero-sum game. This feature is inconsistent with the main argument that EU spending creates European added value. Thus, taking simple net operating balances as an indicator of a Member State’s ‘net benefit’ from the Union’s fiscal activities can lead to misleading results, as demonstrated in the following points of argument.

Ulkopuolinen laatija

Zareh Astryan, Annika Havlik, Friedrich heinermann, Justus Nover

EU membership benefits: Not measured by net operating balances

19-02-2020

National operating budgetary balances (OBBs) do not take into account all of the economic and non-monetary benefits that Member States gain from EU membership. In many policy areas with cross-border characteristics and demand for critical mass, common action at the EU level may lead to better results than fragmented national initiatives. Several studies show that the Single Market has increased employment and growth. The effect of the Single Market deepening since 1990 has been quantified by 3.6 ...

National operating budgetary balances (OBBs) do not take into account all of the economic and non-monetary benefits that Member States gain from EU membership. In many policy areas with cross-border characteristics and demand for critical mass, common action at the EU level may lead to better results than fragmented national initiatives. Several studies show that the Single Market has increased employment and growth. The effect of the Single Market deepening since 1990 has been quantified by 3.6 million new jobs. Additionally, EU GDP would be 8.7% lower if there had been no Single Market integration. The average EU citizen gains €840 more per year thanks to the Single Market. While all EU citizens benefit from income gains thanks to the Single Market, these effects are higher for Western Europeans in absolute terms. Relative to GDP, gains and losses are more similar.

Ulkopuolinen laatija

Marta Pilati, Fabian Zuleeg

How to overcome the "Juste retour" obsession

19-02-2020

A net budgetary balance is a highly misleading indicator of the benefits from EU spending and EU membership. Budgetary decisions taken on the basis of this indicator result in poor policies as they are biased towards programmes with monetary backflows into Member States. This ‘juste retour’ mentality is a major obstacle to achieving more European added value through the EU budget. The deeper underlying cause of this misleading and detrimental net balance preoccupation is the high salience and political ...

A net budgetary balance is a highly misleading indicator of the benefits from EU spending and EU membership. Budgetary decisions taken on the basis of this indicator result in poor policies as they are biased towards programmes with monetary backflows into Member States. This ‘juste retour’ mentality is a major obstacle to achieving more European added value through the EU budget. The deeper underlying cause of this misleading and detrimental net balance preoccupation is the high salience and political appeal of backflow policies, with their easily identifiable national and regional beneficiaries. Policies whose European benefits are more dispersed and do not entail payments into Member States do receive less voter and policy support.

Ulkopuolinen laatija

Friedrich Heinermann, Marta Pilati, Fabien Zuleeg

"I want my money back": The history of national rebates

19-02-2020

This document is a brief overview of the history of the own resources system and its rebates.

This document is a brief overview of the history of the own resources system and its rebates.

Ulkopuolinen laatija

Zareh Asatryan, Annika Havlik, Frierich Heinermann, Justus Nover, Marta Pilati

Illegal, unreported and unregulated (IUU) fishing

17-02-2020

The IUU Regulation (1005/2008) is the core of the EU’s legal framework for action against global IUU fishing. Its primary objective is to prevent, deter and eliminate the trade of IUU-caught products into the EU. One of its key components is a multiple-step procedure for dealing with non-EU countries considered uncooperative in the fight against IUU fishing. Fourth edition. This infographic further updates an earlier one of February 2019. For more information on IUU fishing and the EU's IUU Regulation ...

The IUU Regulation (1005/2008) is the core of the EU’s legal framework for action against global IUU fishing. Its primary objective is to prevent, deter and eliminate the trade of IUU-caught products into the EU. One of its key components is a multiple-step procedure for dealing with non-EU countries considered uncooperative in the fight against IUU fishing. Fourth edition. This infographic further updates an earlier one of February 2019. For more information on IUU fishing and the EU's IUU Regulation 1005/2008 , see EPRS briefing: PE 614.598.

Ulkopuolinen laatija

CHAHRI, Samy

Plenary round-up – Strasbourg, February 2020

14-02-2020

Highlights of the February session included debates on a review of economic governance; the revised enlargement methodology proposed by the Commission; a breach of Council Decision 2017/2074 concerning restrictive measures in view of the situation in Venezuela; the current situation in Syria; on fighting against antisemitism, racism and hatred across Europe; as well as on the ongoing threat to the rule of law in Poland. Members also adopted a resolution on the illegal trade in companion animals. ...

Highlights of the February session included debates on a review of economic governance; the revised enlargement methodology proposed by the Commission; a breach of Council Decision 2017/2074 concerning restrictive measures in view of the situation in Venezuela; the current situation in Syria; on fighting against antisemitism, racism and hatred across Europe; as well as on the ongoing threat to the rule of law in Poland. Members also adopted a resolution on the illegal trade in companion animals. They debated the state of play in the EU's fight against money laundering (in light of the Luanda Leaks); the humanitarian situation of refugees at EU external borders; and the coronavirus outbreak. Members also voted on a resolution on EU priorities for the 64th session of the UN Commission on the Status of Women.

Novel Coronavirus Outbreak

13-02-2020

The paper summarises the latest available information on the novel coronavirus outbreak, and the Union’s preparedness and response actions .

The paper summarises the latest available information on the novel coronavirus outbreak, and the Union’s preparedness and response actions .

What if crop protection were environment-friendly?

11-02-2020

Pesticides are indispensable in modern agriculture, but the EU wants crop protection to be responsible and eco-friendly. What options are there to reduce the use of synthetic pesticides?

Pesticides are indispensable in modern agriculture, but the EU wants crop protection to be responsible and eco-friendly. What options are there to reduce the use of synthetic pesticides?

Policy Departments' Monthly Highlights - February 2020

10-02-2020

The Monthly Highlights publication provides an overview, at a glance, of the on-going work of the policy departments, including a selection of the latest and forthcoming publications, and a list of future events.

The Monthly Highlights publication provides an overview, at a glance, of the on-going work of the policy departments, including a selection of the latest and forthcoming publications, and a list of future events.

Tulevat tapahtumat

20-02-2020
What is our political nature? Knowledge and reason in political decision-making
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EPRS

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