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This economic policy forum is assigned to the question “Does the European Union need a new financial order?” Hans Fehr considers the recent development of the budget of the EU and discusses a number of reform options for the future. He shows that during the 90ies there has been considerable success in consolidating the budget and reforming its structure. The future challenge will be twofold. On one side the UK correction has to be further reduced and finally eliminated, since there are a number of countries with similar budgetary imbalances. In addition, the intended eastern enlargement of the EU creates a stronger reform pressure for the EU expenditure programs. Fehr argues that since there will be no new financing sources available in the medium term, one can be optimistic that the EU will continue its budget consolidation strategy also in the future.

Braucht die Europäische Union ein neues Finanzsystem?