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Macroeconomic Effects of EU Transfers in New Member States

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  • International Monetary Fund

Abstract

Large inflows from the European Union to the New Member States are likely to significantlyimpact macroeconomic outcomes. In this paper, we use the IMF's Global Integrated Monetaryand Fiscal model (GIMF) to analyze the impact of the transfers and show the conditionsunder which they would help speed up convergence. We find that the EU funds need to bedirected predominantly to investment rather than to income support and that to bestaccompany the EU fund inflows, the policy-mix would need to combine counter-cyclicalpolicy with a strong commitment to the existing monetary regime.

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  • International Monetary Fund, 2008. "Macroeconomic Effects of EU Transfers in New Member States," IMF Working Papers 2008/223, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/223
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    1. Zaman, Gheorghe & Georgescu, George, 2014. "Absorbţia fondurilor structurale şi de coeziune în Romania: bilanţul perioadei 2007-2013 şi lecţii pentru exerciţiul financiar curent [The absorption of structural and cohesion funds in Romania: ba," MPRA Paper 56144, University Library of Munich, Germany.
    2. LSE Enterprise,, 2011. "Study on the impact of the single market on cohesion: implications for cohesion policy, growth and competitiveness," LSE Research Online Documents on Economics 42840, London School of Economics and Political Science, LSE Library.
    3. Varga, Janos & in 't Veld, Jan, 2011. "A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: Simulations with the QUEST III endogenous R&D model," Economic Modelling, Elsevier, vol. 28(1-2), pages 647-663, January.
    4. Zeilbeck, Severin, 2015. "An investment initiative for fiscally constrained EU member states: The role of synergetic financial instruments," IPE Working Papers 58/2015, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    5. Jan in 't Veld & Janos Varga, 2010. "The Potential Impact of EU Cohesion Policy Spending in the 2007-13 Programming Period: A Model-Based," European Economy - Economic Papers 2008 - 2015 422, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    6. John Bradley, 2010. "EU Cohesion Policy in a Period of Economic Crisis: Evaluating Impacts in Small Open Economies," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 50-67.
    7. Anca Simina POPESCU & Inocentiu Alexandru FLOREA, 2015. "Coordinates of the Absorption Capacity of Structural and Cohesion Funds at EU Level," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(17), pages 176-185, December.
    8. Bucciarelli Edgardo & Alessi Michele & Persico Tony Ernesto, 2012. "Dynamics Of Development In Europe: Analysis Of Twenty Years Data On Gdp And Hdi," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 262-266, July.
    9. Iana Paliova & Mr. Tonny Lybek, 2014. "Bulgaria’s EU Funds Absorption: Maximizing the Potential!," IMF Working Papers 2014/021, International Monetary Fund.
    10. Alexandru Huza, 2014. "The Cohesion versus Better Spending Debate During the Negotiation of the EU Multiannual Financial Framework 2014–2020," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 91-99, June.
    11. John Bradley, 2010. "EU Cohesion Policy at the Time of Economic Crisis: Assessing the Impact on Small Open Economies," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 3-23.
    12. Valentin Jouvanceau, 2023. "Consumer price rigidity in periods of low and high inflation: the case of Lithuania," Bank of Lithuania Discussion Paper Series 34, Bank of Lithuania.

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