European Union Public Finance

Book excerpt: This is the third edition of 'European Union Public Finance'. Like its two predecessors, it comes out at a key moment for European integration. In 1989 a major reform of the financial system and budget procedure had been introduced following the proposals contained in the Delors package. In 1995 a new financial framework had just been adopted for the period 1993-99, taking into account the Treaty on European Union and the accession of three new Member States. This new edition takes on board the impact of the Agenda 2000 financial framework adopted at the Berlin European Council in March 1999. A coherent set of measures has been taken to pave the way for the next enlargement and major reforms have been introduced in the biggest areas of Union expenditure - the common agricultural policy and structural operations. As this new financial framework is put in place, the European Commission is reforming its own internal workings and procedures to increase its effectiveness. One of the main strands of this reform is to modernise financial management. This should lead to more efficient financial procedures and quicker payments, as part of a general drive to make better use of taxpayers' money. The Commission's administrative reforms also include a new strategic planning system designed to ensure a closer match between activities performed and resources allocated. This entails a radical overhaul of the process for preparing the Commission's preliminary draft budget. The purpose of this publication is to provide an insight into Community public finances that, if not exhaustive, is at least wide-ranging and accurate. With its division into separate chapters and the inclusion of a detailed summary, it can also serve as a reference work. The finances of the European Union are in constant development. The system they represent is both a legacy of the past, which explains some of its complexity, and an ongoing effort to improve and adapt. Further changes will be needed in the years ahead, for example to meet the challenge of enlargement. The Intergovernmental Conference in 2004 will be an opportunity to reform the Community system of finance. Also, as this edition goes to press, a proposal for recasting the financial regulation is nearing adoption. We have therefore included a discussion of the prospects for the future.