by On VoxEU, Paolo Pasimeni and Stéphanie Riso argue that at the EU level, cross-border redistribution is limited: The EU budget accounts for roughly 1% of the EU’s GDP. Around 80% of it, on average, returns back to each country in the form of various allocated expenditures, and only a limited part is actually redistributed among countries. On average over the past 15 years, the redistribution operated by the budget at the level of the EU was equal to 0.2% of the Union’s GDP. As a matter of comparison, the average yearly cross-border flows operated through the federal budget in the US between 1980-2005 was equal to 1.5% of GDP (d’Apice 2015).
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Dirk Niepelt considers the following as important: European Union, Fiscal federalism, Notes, Redistribution
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On VoxEU, Paolo Pasimeni and Stéphanie Riso argue that at the EU level, cross-border redistribution is limited:
The EU budget accounts for roughly 1% of the EU’s GDP. Around 80% of it, on average, returns back to each country in the form of various allocated expenditures, and only a limited part is actually redistributed among countries. On average over the past 15 years, the redistribution operated by the budget at the level of the EU was equal to 0.2% of the Union’s GDP. As a matter of comparison, the average yearly cross-border flows operated through the federal budget in the US between 1980-2005 was equal to 1.5% of GDP (d’Apice 2015).