The Financial Aids of the EU and Turkey’s Gains

1)The Significance of the EU in the World Economy

The 11trillion Euro-GDP of the EU which has a population of 480million with 27 members is equal to the 25% of the world production. The portion of the EU in the world export and importation is nearly the same rate.The GDP of the USA which has a 280million population is approximate to that of the EU total,and the GDP of Japan with 127million-population is about 3.5trillion Euro.In this sense these three blocks have nearly 60% of the world production. In terms of the average of national income per capita;though  the EU average has come closer to the that of Japan,it is still below the USA.This rate, while being 23.200Euro in the EU dating from 2005,is rising to 36,600Euro in the USA .These final numbers show that the EU has too much to  do for catching up with the prosperity level in the USA.

2)Why These Financial Aids Exist

The economic aids of the EU have been pumped with the aim of financing the mutual policies of the union.Within the examples of these policies are agricultural policies, regional development policies,industry-SME policies,research-environment-transportation policies.In the basis of the EU economical integration lies “the mentality of a freely tooth for a tooth rivalry” Yet the humanitarian and social side of the issue is not neglected. A complete development,and the upgrading of the prosperity level in the  underdeveloped countries of the EU have been regarded as an important  complement to the mutual policies. The carrying out of these policies are fulfilled with taking from the rich countries and giving to the poor regions and countries. The amount of the donations are determined according to the various criteria like economical development,population,and the rate of unemployment of the regions and the countries.
It is important to regard the EU financial aids which are primarily given to the countries with poor economy as a tool for eliminating the differences in the rate of economical development among the countries.This kind of an understanding was already stated in the first articles(see articles 2,3 and the introduction part) of the Treaty Establishing the European Communities(of TEEC,with its previous name Rome Treaty). These articles put forward that the philosophy behind the establishment of the union is not the suppresing of the weak one by the strong among the cooperator countries but on the contrary  the development in harmony with the understanding of mutual assistance and solidarity.The aids are extended to the countries which are more  poor in return for the fact that they open their markets to the free trade by  eliminating their custom barriers.

3) The Size of the Financial Aids and the Beneficiaries

The size of the EU aids in 2007 which are formed to serve for this basic aim approximates to 180billion Euro,the 127billion Euro of which is a donation.Nearly 85-90% of these credits and 90-95% of the donations are given to the member countries,and the rest is to the other countries which are not among the members. The budget which was as large as 44billion ECU in 1988 and 103billion Euro in 2004 has risen to 127billion Euro as for the year 2007. 127billion Euro is the first budget of the EU with 27 members and it is equal to the 1% of the total 27 EU GDP. The rise in the numbers is the result of the advancement of the integration within the EU and the enlargement of the EU.
What is essential in the forming the EU budget is the multi-annual financial plans which were accepted in advance. The recently accepted financial plan is the 4.plan and it includes the 7 years in the period of 2007-2013.

Chart 1
The Size of the EU Financial Plans

 Source: Expansión, Lunes 10 de mayo de 1999; 2007-2013 Mali Planı İçin:
SCADPlus: Budget, Towards a new financial framevork 2007-2013,

When we look at the contributions made to the EU budget in the country level,it can be seen that it corresponds to 40-45% of the total budget of the two countries.These countries are Germany which covers the 25% of the budget and France covering the 20% . Italy makes contributions in proportion of 14,1% and England of 11,9%. Thus nearly ¾ of the budget is covered by these four countries.

Chart 2
The Countries Which Gained the Most
Net Transfer from the Donations of 2007-2013

Source: Expansión, viernes 9 de junio de 2006, p. 39
(European Commission)

4)The Comparison of the Given Amounts to Turkey in the Last 43 Years with the Other Countries

Chart 3
The Comparison of the Donations Made to Turkey until 2006 with Those of Some Countries

 Source: Nurettin Bilici, Türkiye - Avrupa Birliği İlişkileri (Genel Bilgiler,
 İktisadi-Mali Konular, Vergilendirme), Seçkin Yayınevi, 2. Baskı, 2005, Ankara.
One of the important reasons why the EU has an indecisive approach towards Turkey is the financial aids. The table above shows that the EU is not impartial in this issue.
In the period beginning from 2007 Turkey willl try to have its portion from the cake of 11,468 million Euro.It has been predicted that together with Turkey,Crotia,Macedonia which are still in the position of candidate countries Albania, Bosnia Herzegovina,Serbia and Montenegro which are potential candidate countries will get benefit. Getting more portions from this cake depends upon the performance of the projects which will be made. In this sense the projects of the central local establishments and organizations, non-governmental organizations like chambers and trade unions will be sponsored. It is known that Turkey has difficulty in carrying out projects.Thus it is necessary to start a serious campaign for project making.