The Union Budget
The budget of the European Union is, in many respects, an innovative transnational public finance experiment. The transition to a system of own resources in the 1970s marked an attempt to push beyond the traditional model for financing international organizations (through ‘national contributions’ from the budgets of the participating states) to establish an autonomous European budgetary order that would complement the ‘new legal order’ of Community law. Expectations may not have been fully realized in that regard, but today’s Union does enjoy a level of budgetary autonomy far exceeding that accorded to other treaty-based organizations. On the expenditure side, over 94 per cent of the budget is invested in common European policies, and it performs transnational redistributive functions in certain policy sectors. Moreover, the institutional framework for the establishment and control of the budget includes particular features, such as a strong parliamentary dimension to decision-making on expenditure and an independent Court of Auditors, that are more characteristic of the budgetary system of a state.