The wrong sort of rebate : the need to reform the UK budget adjustment

Cuthbert, Jim and Cuthbert, Margaret (2005) The wrong sort of rebate : the need to reform the UK budget adjustment. Quarterly Economic Commentary, 30 (2). pp. 45-52. ISSN 0306-7866

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    Abstract

    In this paper we argue that there is a continuing need for some form of rebate mechanism to iron out anomalies in the funding of the EU, but that the particular form of mechanism used to pay the UK a rebate has had severely adverse consequences, and needs to be reformed. Specifically, we argue that the current form of rebate paid to the UK has had perverse incentive effects, which go a long way towards explaining the UK’s semi-detached relationship with the EU.