Authors: Daniel Daianu (coordinator),Catalin Pauna,Alina-Stefania Ujupan, Liviu Voinea

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The European Union is facing major exogenous and endogenous challenges.

Exogenous challenges reside in the changing global context, which impacts on the development of the Union. Globalisation affects the status of the Union in the world, due to newly emerging global powers. There is an increased risk of massive illegal immigration, with implications concerning issues such as clash of civilisations and terrorist threats. Excessive dependence on third parties leads to insecurity and losses of bargaining power. The effects of global warming are increasingly worrying.

Endogenous challenges originate in the Union's unique character as a geo-political entity. The Eastern Enlargement has increased the complexity of the Union. Ageing population and falling birth rates endanger the welfare systems. The functionality of the single market implies the existence of the four liberties and the free circulation of knowledge, conditions which still raise questions about their complete implementation. Re-location within the Union stirs dissatisfaction and rivalry among EU citizens and challenges the solidarity among the European nations.

When re-designing the budget to better tackle these challenges, there are several principles which need to be considered:

- The starting point should be the different realities in the Member States, and in particular, the variety of social and economic circumstances in Europe.

-Solidarity is fundamental

-The budget reform at the EU level should lead to national budget reforms in order to ensure synergy between European and national policy-making tools.

-The legal framework of the review/reform should be the Lisbon Treaty

-The review/reform of the EU budget should consider public opinion support for EU policies.

-No budget item should be dealt with separately, as policies are interdependent.


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