
Brexit: A unique opportunity? – © pixabay.com
04.05.2017
Brexit as opportunity to reform the EU budget
1.EU Member States should seize the unique opportunity offered by the Brexit for a fundamental reform of EU expenditures.
EU expenditures should only target policy areas in which Member States’ un-coordinated actions will be insufficient or policy areas in which common European interests are at stake. Sustainability-oriented tax-based own resources could act as a catalyst to secure the agreement of net contributor countries to uphold the current expenditure level.
The current discussion about the EU budget after the Brexit strongly focuses on its future volume and the effects on national contributions. At the same time, however, the Brexit offers a unique opportunity for fundamental sustainability-oriented structural reforms of the EU budget. To create more European value added with a focus on sustainability, overall agricultural expenditures should be reduced and greened; cohesion funds should be shifted more effectively from richer to poorer Member States and coupled more strongly to climate and employment goals as well as a pro-active migration and integration policy; and expenditures for sustainability-oriented research and infrastructure should be increased.
By replacing national EU contributions with sustainability-oriented tax-based own resources like an EU-wide carbon-based flight ticket tax, a net wealth tax, a financial transactions tax and a Common (Consolidated) Corporate Tax Base, the EU system of own resources can support central EU goals. Whether the Brexit is really able to support future-oriented reforms of the EU budget will eventually depend on how Member States will adapt to the expected revenue shortfall of 10 billion annually: by increasing national contributions or introducing additional revenue sources; by expenditure cuts; or by a combination of these two options. Substituting a substantial share of national contributions by sustainability-oriented tax-based own resources may act as a catalyst to secure the agreement of net contributor countries to uphold the current expenditure level in exchange for far-reaching reforms of the expenditure structure.
Link to full article: Austrian Society for European Politics
By replacing national EU contributions with sustainability-oriented tax-based own resources like an EU-wide carbon-based flight ticket tax, a net wealth tax, a financial transactions tax and a Common (Consolidated) Corporate Tax Base, the EU system of own resources can support central EU goals. Whether the Brexit is really able to support future-oriented reforms of the EU budget will eventually depend on how Member States will adapt to the expected revenue shortfall of 10 billion annually: by increasing national contributions or introducing additional revenue sources; by expenditure cuts; or by a combination of these two options. Substituting a substantial share of national contributions by sustainability-oriented tax-based own resources may act as a catalyst to secure the agreement of net contributor countries to uphold the current expenditure level in exchange for far-reaching reforms of the expenditure structure.
Link to full article: Austrian Society for European Politics
Please contact

Macroeconomics and Public Finance
Further news
Telephone Exchange and Reception
29.08.2025
WWWI: Calendar Weeks 27 to 33 2025
26.08.2025
Retail Business Cycle Report in Cooperation with the Austrian Retail Association
22.08.2025
WIFO Simulations: Targeted Cost Containment of 2.7 billion € in the Pension Sector Requires a Stronger Increase
18.08.2025
WIFO Business Cycle Report of August 2025
11.08.2025
Results of the WIFO-Konjunkturtest (Business Cycle Survey) of July 2025
30.07.2025
WIFO Flash Estimate
30.07.2025
WWWI: Calendar Weeks 23 to 28 2025
22.07.2025
Proper Use of Generative Models of Artificial Intelligence
22.07.2025
Research Group Macroeconomics and Public Finance
21.07.2025
Examination of the Extent of Revisions for the Period from 2020 to 2024
09.07.2025
Mid-term Evaluation of the Federal Government's RTI Strategy 2030
07.07.2025
Economic Development in the Austrian Federal States in 2024
03.07.2025
Structure of Long-term Sick Leave
02.07.2025
WIFO Economists Publish New Book on Austrian Competitiveness
30.06.2025
Results of the WIFO-Konjunkturtest (Business Cycle Survey) of August 2025
27.06.2025
Video: Opening Discussion and Pulse Lecture
27.06.2025
Results of the WIFO-Konjunkturtest (Business Cycle Survey) of June 2025
27.06.2025
Economic Outlook for 2025 and 2026
26.06.2025
Workshop on Sustainability, Inequality and Innovation
18.06.2025
Video: Research Seminar with Matthias Schnetzer and Eva Six
18.06.2025
Aviso: Press Conference on 26 June 2025
18.06.2025
WIFO Business Cycle Report of June 2025
12.06.2025
WIFO Research Brief: Between Insurance and Social Policy
06.06.2025