Power, money and reversion points: the European Union’s annual budgets since 2010

Abstract:

At the close of 2010, an immediate effect of the rule changes to the European Union’s budgetary powers brought in by the Lisbon Treaty was a non-agreement of the annual budget for 2011, which was repeated for the budgets of 2013 and 2015.

Interviews and documents show that the European Parliament lost and the Council won in determining spending outcomes for 2011 and immediate payments for the subsequent years; whether this also resulted in lower budgets overall is ambiguous. When spending increased, this was in line with the will of the Council. The most significant variable was the change in the rules, which shifted the location of the default budget or reversion point to Council’s advantage if there were no agreement.

• Primary Source