The Purse and the Power

Extract

Purse power has been a hot item throughout the Union's history and was again much fought over during the Convention and the Intergovernmental Conference. The Constitution has indeed produced a number of significant changes. What makes the subject so hot? It is not just the money. The Union's budget is no more than that of a single smaller Member State. Most of the expenses are, moreover, fixed. That the budget should be so hot is probably because fighting over money is a good test of strengths generally (with a neat and immediate outcome). This explains the role the purse has always played in constitutional history. True to the grand tradition then, as soon as the European Parliament was given powers in the matter (1975) and got directly elected (1979), it had fights over the EU budget. This was mainly a wedge to break a share for itself in the legislative process. In the years that followed, it has in fact gained more legislative than financial powers. And the Union has been kept short, not on legislative powers but on money.