Studies On EU Budget And Revelation To China

European budget system as well as its reform direction plays an increasing important role in this rapidly changing global economy. As a vital player in the world, EU was labeled with the most prominent scheme of international economy integration, controversial agriculture policy maker and imbalanced regional development area. All these characters make EU functioning innovative and study worthy, for setting a good model for other countries and areas. As far as China concerned, the socialist market economy with Chinese character and EU share numerous problems and obstacles. How to proceed in uncertainty concerns both of them. Therefore, China should absorb essence of EU management. For example, the scientific system and its policy preference give good hints to our financial system reform. Therefore, further study of EU budget system, history and heading directions are meaningful.The first part of the thesis illustrates the character and function of fiscal federalism, setting basis for analyzing and comparing EU budget and ordinary federal states. Decentralization of fiscal power, that is subsidiarity as the theory foundation of EU budget is also mentioned in this section. Then, budget structure is studied. In common sense, the multi-annual financial framework sets "double ceilings" for both annual budget and headlines. Annual budget will then be manipulated on such prospect. For further analyzing the main components of the budget and comparing, financial resources and spending should be given a detailed statement. On the basis of income and expenditure comparison, net contribution rate debate is also an important topic. Supervision of EU budget is a focus of the thesis. The second part makes a comprehensive study of the two main spending headings. The history and reform of agriculture policy give good points to China’s rural development as well as regional rebalance. The third part gives a deep analysis about the differences between EU budget and ordinary state budget in management system, finance resources, spending and borrowing. This study helps to better understand the nature of EU budget. The last part focuses on what can we learn from EU budget system, on both institutional establishment and policy.EU has always been the focus of world which changed rapidly. The EU economic studies are changing with the violating reality. EU budget study is also the case. Former studies always concentrated on a certain area of budget, such as CAP, which has been long discussed. Few gave a comprehensive picture of all aspects and their historical origins. At the same time, the thesis makes an objective and innovative explanation about net contribution rate debate which is an old contention, with an economic and welfare prospective. The purpose of this kind of overall research is to learn experiences and lessons of EU budget system objectively and completely.Besides, as a federal fiscal system, EU budget has its unique characters that few domestic scholars noticed. However, this thesis makes the first step. To begin with, forces, objectives and tools of fiscal federal were discussed. In addition, for each area of ordinary state budget, the paper detects how EU budget different from state budget. For instance, there are fundamental divergences between them on financial resources, expending and management. In the end, we come to a conclusion that EU budget is far from an ordinary macro economic tool, for being short of economy adjusting capacity. Meantime, reader could have a deep understanding of how fiscal power decentralized among different level of governments from studying EU budget system.There is still a lot of work to do to make a perfect analysis. As stated above, EU is undergoing great changes; there are lots of uncertainties in every area, such as how would the2013-2020multi annual budget framework looks like. In addition, because of institutional differences, the paper did not give concrete and applicable suggestions.