MacDougall Report
In 1977, this report suggested that increased integration in the EU and the establishment of a monetary union would require a federal budget of:
- 2-2.5% of GDP in a pre-federal stage.
- 5-7% at a later stage.
- 25% if the EU were to become a full federal union state like the USA.
Today, the EU has a ceiling of 1.27% of EU-wide GNP, a figure that will have to be negotiated again before 2006.
