Publication

This paper contributes to the debate about the review of the EU budget. Rather than addressing new policy priorities, the authors focus on the structure of the European budget and the relationship that should be established between the expenditure and the revenue side. The main proposal is to partition all operations in the current EU budget into two separate chapters, devoted respectively to redistributive transfers and the production of European public goods. Each chapter would have its own dedicated sources of revenue and have to be in balance at all times.