the political link between a reform of revenue and a review of expenditure is inevitable and perfectly reasonable, especially as long as the logic of financing Community policies through revenue stemming from national budgets is still the Union’s guiding principle.
The calculations given in the following sections are based on the assumption that no radical solutions will materialise with regard to the expenditure side. In this short excursus we intend to sketch which modifications may emerge to our results if – against our expectations – a fundamental restructuring of expenditures could be achieved. Here, it should be stressed that many of our arguments with regard to single own resources items hold independently from expenditure side developments. What will be subject to change in the case of fundamental expenditure side reform, however, are the distributive effects. In the following, some of the possible reforms on the expenditure side are briefly presented, and their implications for the design of the revenue side are shown.
KeywordsInternational Energy Agency Nominal Exchange Rate Expenditure Side Refund Rate Revenue Side
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