Redistributive Policies

Abstract

Compared to national political systems, the capacity of the EU to redistribute resources between individuals and states through taxation and public spending is limited. The EU budget constitutes less than 2 per cent of total EU GDP. However, for individuals, farmers, regions, states and private organizations who receive money from the EU budget, the absolute sums involved are quite considerable, and someone, somewhere in the EU pays for these benefits. To help understand how EU expenditure policies are made, and ‘who gets what and why’, we shall first take a look at some general theories about public finances and redistribution.

Theories of public expenditure and redistribution

The budget of the European Union

The Common Agricultural Policy

Cohesion policy

Other internal policies

Explaining EU redistribution policies

Conclusion: a series of welfare bargains