The Impacts of Recent Inflation Developments on the EU Finances

Study Presentation in the European Parliament

In light of the high levels of inflation over recent years, the Committee on Budgets commissioned an in-depth study on the impact of inflation on the EU budget which was presented by WIFO-economists Atanas Pekanov and Marcus Scheiblecker in the European Parliament on 24 January 2024.

The focus of this study is the effect of inflation on the ongoing implementation of the current MFF on an aggregate level. The relevant inflation impacts and the channels via which they take effect are presented and analysed for the MFF and the EU revenue system. The study then maps and discusses policy options to mitigate these effects regarding the ongoing MFF and NGEU implementation, as well as with a view to the ongoing MFF mid-term revision.

Johan van Overtveldt (Member of European Parlament, Chair of the BUDG Committee), Marcus Scheiblecker und Atanas Pekanov © WIFO