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The involvement of the European Union in funding the member states during the economic crisis period

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  • Grigorescu, Adriana
  • Balalia, Alina Elena

Abstract

The budget of the European Union (EU) is financed by the member states’ own resources and has different types of sources. A tax which represents the percentage of a member state’s Gross National Product into the European Union’s Gross National Product is one the main source for the budget. In addition, trade fees, duties, a fee applied on value added tax (VAT) are relevant contributions in financing the budget of the EU. In order to achieve a high level of welfare, the UE is funding a lot of actions at the community level. The EU support is reflected by structural funds, which generate a lot of benefits for the member states, encouraging the competition among them. The paper discusses about the involvement of the EU in funding the member states, taking into consideration the current context of the economic crisis. This crisis period, starting with 2007, creates new situations for which the UE has to adapt its offer of structural funds towards the member states. The situation of member states, the distribution of structural funds, main domains for investment in the current context and ways of actions is analyzed, in order to obtain an overall perspective on the EU support.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25130.

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Date of creation: 06 Nov 2009
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Handle: RePEc:pra:mprapa:25130

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Keywords: European Union; member states; structural funds; economic crisis;

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  1. Ehrhart, Karl-Martin & Gardner, Roy & von Hagen, Jürgen & Keser, Claudia, 2000. "Budget processes: Theory and experimental evidence," ZEI Working Papers B 18-2000, ZEI - Center for European Integration Studies, University of Bonn.
  2. Beetsma, Roel & Giuliodori, Massimo, 2007. "On the Relationship between Fiscal Plans in the European Union: An Empirical Analysis Based on Real-Time Data," CEPR Discussion Papers 6088, C.E.P.R. Discussion Papers.
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