Thursday, April 11, 2019

Misconceptions of the E.U. Budget

Could it be that at least some of the British voters who were in favor of secession from the E.U. held misconceptions of the federal budget? If so, perhaps the antagonism was unduly harsh in the referendum.  
So many misconceptions have existed regarding the E.U.’s budget that the European Commission published a “myth-buster” page on its web-site in 2013. As against the claim that the E.U.’s budget was enormous, for example, the Commission pointed out that the 2011 budget was about €140 billion, while the combined budgets of the 27 states were €6.3 trillion. In fact, the E.U.’s budget was less than that of the budgets of medium-sized states, such as Austria and Belgium. Whereas the E.U. budget represented about 1% of the E.U.’s GDP (the total value of all goods and services produced in the E.U.), the typical state’s budget was 44% of the state’s GDP. Relative to economic activity, the E.U. budget was not enormous, the Commission concluded.
In terms of the growth of the E.U. budget, the Commission pointed out that between 2000 and 2010, the state budgets had increased by 62% while the E.U. budget had increased by only 37 percent. Lest it be argued that the state budgets had been more democratically determined, the European Parliament, the members of which are directly elected by E.U. citizens, must approve the E.U. budget.
Regarding the misconception that most of the E.U. budget went to administration, the Commission pointed out that administrative expenses amounted to less than 6% of the total 2011 E.U. budget, with salaries accounting for half of that 6 percent. More than 94% of the budget, according to the Commission, “goes to citizens, regions, cities, farmers and businesses.” In this regard, the federal spending was not much different than state spending. In fact, state and local officials typically selected the E.U.-sponsored projects best suited to the officials’ respective areas.
Lastly, regarding the misconception that most of the E.U. budget has gone to farmers, direct aid to farmers and market-related programs was just 30% of the budget in 2011, and rural development spending was only 11 percent. For perspective, around 70% of the EC’s budget in 1985 was spent on agriculture. Put another way, the E.U. had diversified, hence reaching more citizens.

Source:

Myths and Facts,” E.U. Commission.