At the level of the European Union (EU) policies to support real convergence across member states are limited to public expenditure, whereas the revenue side of the EU budget is largely neglected. After discussing convergence as a policy goal, this article identifies the most important shortcomings of the EU's current fiscal system with respect to the reduction of spatial disparities. Alternatives to the current European revenue system are then examined with a view to their appropriateness for realizing inter-nation progressivity.
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