Optimal Structure of International Union Budgetary Revenues

Abstract

This article proposes a new approach to the issue of political and financial sustainability (equilibrium) in an international union. The proposition is made to set members’ budgetary payments proportionate to their willingness to pay. It is argued that this willingness-to-pay principle ensures an optimal setup in the institutional system of an international union. Application of this methodology to the EU allowed deriving the members’ optimal budgetary contributions and brought up some other important insights.