The name is absent



- 21 -

cratic jurisdictions according to which policies in direct democracy more strongly follow the Wick-
sellian connection of tax prices and spending.

These arguments lead us to propose the introduction of elements of direct democracy in a future
European Constitution. The European citizens should have the possibility to decide themselves about
the future European Constitution as well as any future changes of it. Thus, we propose a
mandatory,
required and binding
referendum on total and partial revisions of the European Constitution.
Because we also propose that the EU gets its own value added tax revenue, the rate of which is to
be fixed in the constitution, tax increase is also subject to the mandatory referendum. In addition, we
propose a
constitutional initiative, a statutory as well as a general initiative. Finally, in the case
that the EU should adopt more competencies and power and, therefore, have increased spending
needs, we propose a
fiscal referendum for financially important projects.

References

Abromeit, H. (1998). Democracy in Europe: Legitimising Politics in a Non-State Polity, Berghahn,
New York.

Abromeit, H. (2002). Wozu braucht man Demokratie?: Die postnationale Herausforderung der
Demokratietheorie
, Leske and Budrich, Opladen.

Aghion, Ph. and J. Tirole (1997). Formal and real authority in organizations, Journal of Political
Economy
105, 1 - 29.

Aristoteles. Politika, edited by H. Flashar, Akademie Verlag, Berlin 1879.

Barankay, I. (2002), Referendums, Citizens’ Initiatives and the Quality of Public Goods: Theory and
Evidence, mimeo, University of Warwick.

Besley, T. and St. Coate (2000). Issue unbundling via citizens’ initiatives, mimeo, London School of
Economics.

Blankart, C.B. (2000). The process of government centralization: A constitutional view, Constitutional
Political Economy
11, 27 - 39.

Blomberg, S.B. and G.D. Hess (2002). The impact of voter activity on economic activity, forthcoming
in:
European Journal of Political Economy.

Bogdanor, V. (1989). Direct elections, representative democracy and European integration, Electoral
Studies
8, 205 - 216.

Boyce, B. (1993). The democratic deficit of the European Community, Parliamentary Affairs 46, 458
- 477.

Brennan, G. and A. Hamlin (2000). Democratic Devices and Desires, Cambridge University Press,
Cambridge.

Brennan, G. and L. Lomasky (1993). Democracy and Decision: The Pure Theory of Electoral
Preference
, Cambridge University Press, Cambridge.

Breton, A. (1996). Competitive Governments: An Economic Theory of Politics and Public Fi-
nance
, Cambridge University Press, Cambridge.

Buchanan, J.M. (1975). The Limits of Liberty: Between Anarchy and Leviathan, University of Chi-
cago Press, Chicago.

Buchanan, J.M. (2001). Direct democracy, classical liberalism, and constitutional strategy, Kyklos 54,
Special Issue ‘Festschrift on the occasion of the 60th birthday of Bruno S. Frey’, 235 - 242.



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