class 5

Question 1

Who produces laws in the EU legal system?

Answer 1

Both the EU and member states.

Question 2

What happens if EU law conflicts with national law?

Answer 2

EU law has primacy and must be applied

Question 3

Is the EU budget large compared to national budgets?

Answer 3

No. It is relatively small.

Question 3

Why does the EU legal system function effectively?

Answer 3

Because member states generally comply with EU law.

Question 4

Approximately how large is the EU budget compared to GDP?

Answer 4

About 1% of EU GDP.

Question 5

How large are budgets in federal states?

Answer 5

About 20–30% of GDP.

Question 6

What would happen if the EU budget reached about 7% of GDP?

Answer 6

The EU would resemble a federal system financially.

Question 7

What are the two levels of EU budgeting?

Answer 7

• Multiannual budget
• Annual budget

Question 8

What is the Multiannual Financial Framework (MFF)?

Answer 8

A long-term EU budget plan covering several years (7)

Question 9

How is the MFF adopted?

Answer 9

By unanimity among member states.

Question 10

What is the purpose of the annual EU budget?

Answer 10

To determine yearly spending within the MFF limits.

Question 11

How is the annual budget usually adopted?

Answer 11

Through qualified majority voting.

Question 12

What is the largest source of EU budget revenue?

Answer 12

GNP-based contributions from member states.

Question 13

name other sources for money for the EU

Answer 13

• VAT resources
• new tax on non-recycled plastics
• custom duties and import tariffs

Question 14

Do all member states receive money from the EU budget?

Answer 14

Yes but not an equal amount

Question 15

What is the main purpose of EU redistribution?

Answer 15

To support economic development in poorer regions.

Question 16

Do richer and poorer EU countries contribute the same amount to the EU budget?

Answer 16

No. Richer countries contribute more, while poorer countries contribute less.

Question 17

Do richer countries receive money from the EU budget?

Answer 17

Yes, but relatively less compared to poorer countries.

Question 18

Which country receives the most EU funds in absolute terms?

Answer 18

Germany, because it is the largest economy.

Question 19

Which country receives the most EU funds relative to its GDP?

Answer 19

Croatia (around 4% of GDP).

Question 20

Why do richer countries often want a smaller EU budget? WELK BEGRIP

Answer 20

Because they are NET CONTRIBUTORS (they pay more into the budget than they receive).

Question 21

Why do poorer countries often want a larger EU budget?

Answer 21

Because they are net beneficiaries (they receive more than they contribute).

Question 22

What are the two main components of the EU budget?

Answer 22

resources (income) and expenditure (spending)

Question 23

What determines how much a country contributes to the EU budget?

Answer 23

Mainly its economic size (GNP/GNI).

Question 24

Which countries are usually net contributors? Which countries are usually net beneficiaries?

Answer 24

net contributors: Richer countries (e.g. Germany, Netherlands, Sweden). net beneficiaries: Poorer countries (e.g. Croatia, Romania, Bulgaria).

Question 25

Why do richer countries often benefit from these indirect effects (EU membership)?

Answer 25

Because they usually have strong industries and export-oriented economies.

Question 26

Why is focusing only on net balance misleading?

Answer 26

Because it ignores indirect economic benefits of EU membership.

Question 27

What is the Rotterdam effect?

Answer 27

Economic benefits from EU trade flows passing through large ports like Rotterdam (transport, logistics and trade services).

Question 28

Why is the Rotterdam effect not visible in the EU budget?

Answer 28

Because it comes from TRADE ACTIVITY, not from budget transfers.

Question 29

What is the Athens effect?

Answer 29

Economic benefits created by EU investments in infrastructure and development projects.

Question 30

How do EU funds contribute to the Athens effect?

Answer 30

By financing roads, infrastructure, education, and regional development.

Question 31

What is the domestic market effect?

Answer 31

Economic benefits from access to the EU single market.

Question 32

Why do richer countries often benefit strongly from the domestic market effect?

Answer 32

Because they have competitive companies that export across the EU.

Question 33

How does the single market increase economic benefits for companies?

Answer 33

By removing trade barriers between EU countries.

Question 34

What is the Global Europe effect?

Answer 34

The EU negotiating internationally as one large economic actor instead of different countries.

Question 35

Why does the EU have stronger bargaining power internationally?

Answer 35

Because it represents all member states together.

Question 36

Why do richer companies often invest in poorer EU countries?

Answer 36

Because EU integration makes investment easier and markets more stable.

Question 37

After how long do poorer countries often start exporting more due to EU integration?

Answer 37

Roughly 10 years.

Question 38

Who wrote the Draghi Report (2024)?

Answer 38

Mario Draghi, former President of the European Central Bank.

Question 39

What was the main conclusion of the Draghi Report about the EU budget?

Answer 39

The EU budget needs to be 3–6 times larger for deeper integration and competitiveness.

Question 40

What was the main conclusion of the Draghi Report about the EU budget?

Answer 40

The EU budget needs to be 3–6 times larger for deeper integration and competitiveness.

Question 41

three main elements of the EU financial framework: own resources expenditures ceilings annual budgets

Answer 41

sources of eu revenue the maximum limits on EU spending the amount of EU spending for a specific year

Question 42

What is Next Generation EU (NGEU)?

Answer 42

A temporary EU recovery fund created after the COVID-19 crisis.

Question 43

How was Next Generation EU financed?

Answer 43

The EU borrowed money on financial markets.

Question 44

How did Next Generation EU affect the size of the EU budget?

Answer 44

It temporarily increased EU spending to about 2% of EU GDP