The Financial Negotiations: Budget and Finance, Structural Funds

Abstract

A discussion of Poland's position in the budget & finance area of accession negotiations for EU membership focuses on Poland's stance that it should "achieve the position of a net beneficiary from the first year of membership." The feasibility of this arrangement that would necessitate payments to the EU budget that are smaller than transfers, is considered by examining the possible size of transfers, problems of their utilization, & the probable size of contributions. Key elements of the contributions EU members are required to make to the budget used to finance common policies are described. It is concluded that Poland's request to phase in its budget contribution is justified but, in order to avoid becoming a net contributor to the EU budget & not a net beneficiary, Poland must arrange to make the most efficient use of EU financial transfers in addition to negotiating a phasing in of budget contributions. Also, the terms of payments to the EU common budget should be determined only after talks in other areas are completed. J. Lindroth