Abstract
After the setbacks to ratification of the European constitutional treaty in France and in the Netherlands, the June 2005 European Council was not able to reach an agreement on the future of the European budget. And the compromise eventually agreed upon in the Council’s meeting of December 2005, under the British presidency, was first rejected by a massive coalition in the European Parliament in January 2006, the argument being that the budget is too small and insufficient to meet the main objectives of the EU. It took another three months of negotiations before a slightly modified version was finally adopted in three-institutional compromise. Yet when the European summit of 22 and 23 March 2005 in Brussels adopted a reform of the Stability Pact along the lines of what the German and the French governments were requesting, the way had seemed clear for a compromise on the future medium-term budget (2007–13) of the EU of 25 member states or, more probably, 27, since Bulgaria and Romania, which have now signed accession treaties, will more than likely have joined the Union by then. The European Council meeting on 22–23 March had endorsed the idea of a stronger cohesion between the pact and a European budget serving the interests of the Lisbon strategy.
Every one knows that a great deal of the errors committed by the State legislatures proceeds from the disposition of the members to sacrifice the comprehensive and permanent interest of the State, to the particular and separate views of the counties and districts in which they reside. And if they do not sufficiently enlarge their policy to embrace the collective welfare of their particular State, how can it be imagined that they will make the aggregate prosperity of the Union, and the dignity and respectability of its government, the objects of their affections and consultations?
James Madison, The Federalist, no. 46, cited by Begg (2005)
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Fitoussi, JP., Cacheux, J.L. (2007). The EU Budget. In: Fitoussi, JP., Cacheux, J.L. (eds) Report on the State of the European Union. Report on the State of the European Union. Palgrave Macmillan, London. https://doi.org/10.1057/9780230287938_6
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DOI: https://doi.org/10.1057/9780230287938_6
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