The evolution of the European Union budgetary system

The European Union (EU) is currently the largest and the most successful supranational institution that spans across the Europe Continent. This thesis analyzes the transition of the EU budgetary system during the latest expansion that adds ten new member states. A historical background of the EU budgetary system is followed by the analysis of the budgetary process and decision-making powers of the European Council and the European Parliament, the proposed reformation of the EU budgetary finance through the own resources system, and the projected allocations of the annual EU budget over the next ten years. A conclusion of this thesis reveals that the current allocations of voting powers foster cooperation and compromise between small and large member states, a proposal to reform the own resources system is practical and fair to all member states, and the EU is looking forward to shift the economy of its members toward knowledge economy.