Main challenges of EU budget reform – positions of member states and EU institutions including probable scenarios of development

Study concentrates on the main challenges of EU budget reform. On the basis of analysis of teoretical literature and positions of member states and EU institutions, it comes to the conclusion that compromise on the reform of EU budget would be very difficult in the near future. Reform of EU budget should include reduction or cancellation of inefficient direct subvention in the agriculture and limitation of structural funds only to the poorest regions. To strenghten its economic position, EU should increase financing of productive costs in the field of science, research, education, enviroment, energy security and foreign policy. To achieve it, it is necessary to decrease innefficient expenditures or increase contributions of individual states, eventually introduce new EU source, e.g. ecological tax, rather than harmonize very different tax bases and conditions of existing taxes in different member countries. All these topics are very controversial. The key for EU budget reform consists in the reform of agriculture policy, especially. Contemporary economic problems of the EU could constitute certain stimulus for discussion about necessary changes, as it already is in the case of monetary union. But the contemporary situation of public finances in member states is very serious and states will be very probably against increasing of their contribution to the EU budget. Therefore, the amout of available recourses will very probably remain the same. It can be expected certain increase of expenditure in the field of competiveness of the EU and on the solution of climatic change which are the priorities of member states. Other fields can not expect any increase of recourses.