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A new role for the EU budget: addressing the EU democratic deficit through fiscal policy and citizens' participation

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The intergovernmental decision-making process in the economic governance of the European Union promotes and consolidates a unitary element of integration that hinders the nature of EU integration as a federation of previously independent States. Importantly, this impacts the model of financing and expenditure of the EU budget, as well as the representation of EU citizens, which presents significant shortcomings. Importantly, the outcomes in these areas are increasingly at odds with the deliverables expected by EU citizens, which fundamentally explains the perceived democratic deficit between them and the Union. As a result, it is essential to enhance the democratic credentials regarding the financing of the Union. To this end, I discuss why the adoption of a direct tax on income of EU citizens, directly accruing to the EU budget, is a least imperfect way to pursue. Likewise, citizens will only accept democratising revenue if the nature of expenditure changes. Therefore, a generality principle is discussed for Union spending to ensure that majorities are required to approve expenditure that is able to generate value for all groups of citizens, indistinctively.

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EU expenditure Economic and monetary union Financing EU budget Participation-based approach

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Editora

Centro De Estudios Politicos y Constitucionales

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