Bloomberg View: Why It's Time for the EU to Slim Down

The EU needs to establish priorities before asking for more money

Mario Draghi, president of the European Central Bank, at the bank’s headquarters in FrankfurtPhotograph by Ralph Orlowski/Bloomberg

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November 21, 2012 at 11:41 PM UTC

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This article is part of the November 26, 2012 issue of businessweek.

As in many marital disputes about spending, the argument over increasing the European Union’s central budget isn’t really about the money. It’s about domestic politics and differing visions for Europe. And ultimately, the EU institutions don’t deserve the extra cash they’re asking for.

The European Commission is asking for a combined 2014-2020 budget of €1.033 trillion ($1.32 trillion), a 4 percent to 6 percent increase, depending on whether an EU friend or foe has his finger on the calculator. The U.K. comes up with the highest estimate and is asking for a budget freeze in real terms. European Council President Herman Van Rompuy has proposed a budget of €973 billion, with €25 billion of savings to come from spending on agriculture. France, which received 17 percent of all EU farm aid last year, has rejected that plan out of hand.