1. Ministry of Foreign Affairs of Hungary Gábor Iván Budapest, 30 May 2008 1 Justification of the EU budget by integration theory perspectives Gábor Iván State Secretary, Ministry of Foreign Affairs of Hungary ‘The Future of the EU Budget’ Conference in Budapest, 30 May 2008

2. Ministry of Foreign Affairs of Hungary Gábor Iván Budapest, 30 May 2008 2 EU budget as a paradox in European integration? classical liberalism: integration viewed as negative integration, common budget gets little attention – But theory presupposes countries at a similar level of development regulation theories: no significant financial means required

3. Ministry of Foreign Affairs of Hungary Gábor Iván Budapest, 30 May 2008 3 Theories that explain the evolution of the EU budget - 1 development theories: EU budget as a tool for tackling differences among MSs neoliberal schools: budget as a facilitator of convergence federalism: EU budget as a means of achieving goals of the Treaty (neo)functionalism: delegation of functions and competences to the supranational level requires common financial resources

4. Ministry of Foreign Affairs of Hungary Gábor Iván Budapest, 30 May 2008 4 Theories that explain the evolution of the EU budget - 2 conflict theories: EU budget as a tool for solving conflicts among MSs institutionalism: the benefits of the policies financed by the EU budget are higher than the costs of having a budget theory of optimal currency areas: EU budget as a means of securing stability and protection against asymmetric external shocks in EMU

5. Ministry of Foreign Affairs of Hungary Gábor Iván Budapest, 30 May 2008 5 Conclusions of the theories Most of the integration theories explain the justification of a common budget: a regional economic integration leading towards a political one needs budget in order to – decrease different levels of development – macro-convergence is driven by competition facilitated by transfers – collective political responsibility presupposes common policies that need budget transfers – tasks delegated to supranational level need resources – conflict resolution requires redistribution  The EU budget is not a paradox of the integration

6. Ministry of Foreign Affairs of Hungary Gábor Iván Budapest, 30 May 2008 6 Thank you for your attention!