The budget, the funds of European Union and an assessment in terms of Turkey

While predictions of the financial impact of Turkeys accession on theEU budget are highly uncertain, it is clear that the impact will be substantial.Itis important to underline that the cost of Turkey?s accession will be a matterfor the negotiations.Accession of Turkey to the Union would be challenging both for theEU and Turkey If well managed, it could offer important opportunities forboth. The necessary preparations for accession would last well into the nextdecade. The EU will evolve over this period,and Turkey should change morerapidly and radicaly. Meanwhile the acquis will also develop further torespond to the needs of an EU of 27 or more.Turkey?s accession would be different from previous enlargementsbecause of the combined impacts of Turkey?s population, size, geographicallocation, economic and security potential,as well as cultural and religiouscharacteristics. Accession of Turkey, a lower middle income country,wouldincrease regional economic disparities in the enlarged EU in a way similar tothe most recent enlargement, and would represent a major challenge forcohesion polıcy.The budgetary impact of Turkey?s membership to the EU can be fullyassessed once the parameters for the financial negotiations with Turkey havebeen defined in the context of the financial perspectives from 2014 onwards.The nature and amount of transfers to Turkey would depend on a numberof chancing factors, such as the EU?s policies and any special arrengementagreed with Turkey in the negotiations as well as the the butgetaryprovisions in place at that time, in particular the overall budgetary ceiling.However its clear that the budgetary impact on the basis of present policieswould be substantial.Most expenditure areas would be affected significantly from Turkey?smembership as regards agriculture, it is clear that Turkey would be eligiblefor significant support under the CAP in it?s current form including the ruraldevelopment policy. The size of agricultural sector in Turkey both in absoluteterms as well as with respect to its economic and social role will represent animportent element in budgetary conciderations in the futureAs regards regional policy, with a level of GDP per capita at about28,5 of the EU25 average at puchasing power standarts, close to the levelof Bulgaria and Romania Turkey would ,based on current rules, be eligiblefor significant levels of stuructural operations expenditure. However,Whileassuming the amount of support to Turkey from EU; İt will be beneficial toconcider this emphasises on the Commission?s ``İssues Arising fromTurkey?s Membership Perspective?? report:`?The existing rules have never been applied to a country of a similarsize, similar level of ecconomic development and similar intensity of regionaldisparities as Turkey. On the one hand, this may justify the introduction ofspecific mechanisms which take into account the specifities of Turkey. On theother hand, as economic developments in the coming twenty years isıncertain, it is not self-evident that the existing upper limit of % 4 of GDP onthe level of total annual structural and cohesion funds transfers would bereached by Turkey or any other country in case of Turkey?s accession ,itshould be noted that it will no longer be eligible for pre-accesion aid.??Given its size and population Turkey as a member would have animportant impact over budget management on EU institutions, in particularas regards the European Parliaments and the Counsil, similar in scale to thepresent larger members.