The system of own resources in the European Union in the perspective of Eastern Enlargement

Abstract

The system of own resources was introduced in 1971 to give the Community some financial autonomy from member states' transfers and to support supranational method of integration. Then, due to the lack of elear finalite politique, it was shaped by politicians according to current needs of public finances and to decision-making procedures in the Community. Therefore it became somewhat inconsistent with basic ideas written in the Treaties and deeper refonns are expected. lt is not evident, however, which way they will go because opinions of the Commission and of the European Council vary on this subject. The re-evaluation of the system (in 2005 at the latest) will undoubtedly take into account the implications of the next enlargement. It is arguable that the new member states should take part in shaping the new solutions. Their accession will make inadequate the financing provided by own resources and will reopen discussion on equity of the system among old members. The system will become more difficult to control because public authorities in new member states will not have enough experience in handling the revenues owed to the EU. Bigger financial revenues, combined with non-transparent procedures, will make the system less cost-effective. lt seems that granting more financial autonomy to the system might be crucial for its reform.