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Working Paper (2012-10) - Financing the EU budget and the value of union

Working Paper (2012-10) - Financing the EU budget and the value of union



Real convergence has not occurred in Europe . However, a union of heterogeneous countries keeps its meaning if the relationship is a source of additional value. It is possible to identify the sources of the "value of the union." It is also necessary to do so.

Indeed, a union, seen as a cooperative game, is only viable if the value it creates is distributed in such a way that the "players" are encouraged to participate.
Exercising is complex: it s 'In particular describe multiple scenarios "counterfactual" (what would have happened in 1992 if the path of monetary union was not taken).

These exercises are subject to debate, but their logic can renew issues related to equalization system and contribution to the EU budget as the subject of a transfer union somewhat closed.

The principle of fairness that governs the financing of the EU budget is not large enough to oppose redistributive logic and logic incentive. Debates boosted by the European Commission for the 2014-2020 budget on interest taxation in this community are approaching a new perspective.

  • Keywords : European Union; financing the Community budget, taxation, returns to scale, cooperative games.
  • Author : Jean-Paul Nicolai, Department of Economics, Finance
  • No. 2012-10


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