Recommendations for Enhancing EU Economic Governance and Cohesion Policy

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Panel 2:
Links between cohesion policy and
European economic governance
 
Dirk H. Kranen
Head of Division
Federal Ministry of Finance Germany
 
EU Cohesion Policy Conference, Bratislava 15 – 16 September 2016
 
2
 
Financial
Contributions
in 2015
 
3
 
New Priorities in European Spending
How to shape the EU-Budget of the Future-
 
Conference in Berlin
12 July 2016
organized by the Federal
Ministry of Finance of
Germany
brought together scientists,
delegates of member states and
the Commission and the
German Parliament
Four sessions – four
recommendations
 
4
 
Recommendation
 
How to achieve EU-wide benefits from EU spending?
 
A large fraction of EU-spending is rooted in past negotiations
and acted as side payments to achieve consent by member
states. This political rationalization notwithstanding the
budget is characterized by a lack of provision of European
public goods. It is crucial for the European Union to put these
goods into their focus and thereby adhere to the principle of
subsidiarity.
 
5
 
Recommendation
Does the Common Agricultural Policy still comply with
the spirit of the European treaties?
 
Given its substantial share of EU-spending the Common
Agricultural Policy is still a field of key importance for the
EU. Yet like all other policy fields the Common Agriculture
Policy has to prove its significance for spending priorities in
the future. Given concerns that this policy does not comply
with the main objectives and is vastly inefficient, this part of
the budget offers substantial scope for reforms.
 
6
 
Recommendation
How to improve the flexibility of the EU budget?
 
EU should be able to react effectively and quickly to
unforeseen events like the current migration challenge.
Increasing the flexibility should be done in a way that does
not harm the function of the budget.
 
7
 
Recommendation
 
How EU Cohesion Policy might contribute to the
implementation of countryspecific 
recommendations
 
The cohesion policy should be linked with the country-
specific recommendations. This would strengthen the
effectiveness of cohesion policy and the overall consistency
of the fiscal and economic policy of the European Union.
 
8
 
Existing links between cohesion policy and
European Semester
 
Fosters European added value of EU
expenditures
Ex ante conditionality
Macro-economic conditionality
 
=> correct approach (in principle)
 
9
 
How to improve the link?
 
Weak points in construction:
too many objectives
too much discretion
Berlin recommendations (12 July 2016):
strenghtening the link: less objectives and strict
application of macro-economic conditionality
harmonization of csr and use of cohesion
money
 
 
10
 
11
 
Thank You!
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Explore key recommendations from the EU Cohesion Policy Conference in Bratislava and the Federal Ministry of Finance of Germany. Topics include achieving EU-wide benefits from spending, evaluating the Common Agricultural Policy, and improving budget flexibility. These suggestions aim to align EU spending with public goods provision, comply with treaty objectives, and enhance responsiveness to challenges like the migration crisis.


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  1. Panel 2: Links between cohesion policy and European economic governance EU Cohesion Policy Conference, Bratislava 15 16 September 2016 Dirk H. Kranen Head of Division Federal Ministry of Finance Germany Bundesministerium der Finanzen Berlin

  2. Financial Contributions in 2015 Bundesministerium der Finanzen 2 Berlin

  3. Bundesministerium der Finanzen 3 Berlin

  4. New Priorities in European Spending How to shape the EU-Budget of the Future- Conference in Berlin 12 July 2016 organized by the Federal Ministry of Finance of Germany brought together scientists, delegates of member states and the Commission and the German Parliament Four sessions four recommendations Bundesministerium der Finanzen 4 Berlin

  5. Recommendation How to achieve EU-wide benefits from EU spending? A large fraction of EU-spending is rooted in past negotiations and acted as side payments to achieve consent by member states. This political rationalization notwithstanding the budget is characterized by a lack of provision of European public goods. It is crucial for the European Union to put these goods into their focus and thereby adhere to the principle of subsidiarity. Bundesministerium der Finanzen 5 Berlin

  6. Recommendation Does the Common Agricultural Policy still comply with the spirit of the European treaties? Given its substantial share of EU-spending the Common Agricultural Policy is still a field of key importance for the EU. Yet like all other policy fields the Common Agriculture Policy has to prove its significance for spending priorities in the future. Given concerns that this policy does not comply with the main objectives and is vastly inefficient, this part of the budget offers substantial scope for reforms. Bundesministerium der Finanzen 6 Berlin

  7. Recommendation How to improve the flexibility of the EU budget? EU should be able to react effectively and quickly to unforeseen events like the current migration challenge. Increasing the flexibility should be done in a way that does not harm the function of the budget. Bundesministerium der Finanzen 7 Berlin

  8. Recommendation How EU Cohesion Policy might contribute to the implementation of countryspecific recommendations The cohesion policy should be linked with the country- specific recommendations. This would strengthen the effectiveness of cohesion policy and the overall consistency of the fiscal and economic policy of the European Union. Bundesministerium der Finanzen 8 Berlin

  9. Existing links between cohesion policy and European Semester Fosters European added value of EU expenditures Ex ante conditionality Macro-economic conditionality => correct approach (in principle) Bundesministerium der Finanzen 9 Berlin

  10. How to improve the link? Weak points in construction: too many objectives too much discretion Berlin recommendations (12 July 2016): strenghtening the link: less objectives and strict application of macro-economic conditionality harmonization of csr and use of cohesion money Bundesministerium der Finanzen 10 Berlin

  11. Thank You! Bundesministerium der Finanzen 11 Berlin

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