Against the background of the status quo analysis the authors present a reform model which includes the complete phasing out of the VAT resource, a financing of the budget completely on the basis of the GNI resource and a generalised but limited correction mechanism (GLCM). The GLCM would make a clear distinction between policies having an intentional distributive effect or not. A further element of the reform proposal is a move towards a stronger financial contribution of regions to EU spending.
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