ABSTRACT
The enlargement process induces strong pressures for reforming European Union (EU) institutions. The enlargement process, due to the large number of new entrants, will aggravate the problem of an uneven regulation in the internal market. This chapter focuses on a few aspects of the institutional reform: far from completeness and reviews some of the issues that appear more closely related to the conduct of economic policy. It is well known that the institutional nature of the EU is peculiar and difficult to compare both with existing federal states and with other international entities. The method of financing lacks transparency and accountability, EU citizens do not perceive how and how much they are contributing to the EU budget. The EU Commission and the EU Parliament have put forward the proposal to move away from the current method of financing the Union and replace it with own taxes, voted for by the EU Parliament.
