The European Union Budget – evolution, perspectives

By means of the European Union Budget, the activities that take place between the member states are coordinated every year, the trends of the community politics and their priorities. The annual budgets are parts of the seven years budget cycle, also called as “financial perspectives”. The fundamental principles that govern the budget of the European Union are: the unity principle, the universality principle, the annual principle, the balance principle, the specification of expenses and the finance through its own resources. The fiscal policy acts on two levels: on the economical growth, in the situation where the economies are in the accentuated “heat” phase, by slowing it down and throughout the fiscal policy, that takes accelerations measures regarding the economies that are in recession phase. The negative effects can not be removed unless the fiscal politics are harmonized. Although the actual budget is diminished compared with the previous one, this one is more flexible than it.