The subject of the paper is the discussion on horizontal redistribution of public revenues among local self-government units. The assumed aim of this redistribution is to equalize the different levels of income and burden of expenditure. The paper lists desirable features of this redistribution, motives for its application, and arguments of its opponents. The analysis of the latter shows that while part of the criticism refers to the essence of horizontal redistribution, significantly more of it concerns the dysfunctions of its mechanism which became apparent after 2008. The criticism focuses, for example, on the criteria for making compensatory payments, the structure of tax revenue indices, the so-called reference period, the amounts of compensatory payments, the criteria for the distribution of the collected amounts. The paper includes suggestions concerning recommended directions of changes in the mechanism of this redistribution.
The article discusses the functions of the Committee of the Regions with respect to the legislative process and politics of the European Union, as well as to the politics of the Member States. The main assumption of the analysis, based on the deductive method, is that because of the current political situation in Europe, in addition to being a body giving opinions on the law, the Committee of the Regions should have a greater, fundamental role in shaping the future directions of development for the entire European Union. The discussion is set in the context of fiscal federalism theory and one of its elements assuming that a federal structure has a role in mitigating conflicts, as well as referring to the hybrid nature of the contemporary models of development. It is underpinned by the relevant literature, analyses commissioned by the European Commission, materials of the Committee of the Regions, findings of earlier studies, and the so-called impact reports of the Committee of the Regions published from 2014 to 2017.
