NON-PAPER ON THE FUTURE BUDGETARY SYSTEM IN THE EUROPEAN UNION

Input to the European Convention Mrs. Lena Hjelm-Wallén and Mr. Gijs de Vries, Members of the Convention, would like to present the following paper on the future budgetary system.
The future budgetary system in the EU should be based on the concepts of long-term stability, accountability and institutional balance. The system should promote efficient resource allocation, which is absolutely necessary in order to find room for expenditures caused by the new challenges facing the Union.

In order to create such a system, a top-down approach to the budgetary process is needed. This implies budget ceilings and other institutional frameworks that ensure budget discipline and responsible decision-making by institutions entrusted with handling the financial resources of the Union. These principles are essential to prevent budget crises and to ensure cost control in the daily implementation of the EU budget. In other words, they are necessary to create a well functioning and legitimate European Union.
Consequently, the principles described must be reflected in the financial provisions in the Treaty. Given this, we draw the following conclusions as regards the future budgetary system.

To read the full contribution, click: http://register.consilium.eu.int/pdf/en/03/cv00/cv00651en03.pdf