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

Adriana Grigorescu () and Alina Elena Balalia

MPRA Paper from University Library of Munich, Germany

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.

Keywords: European Union; member states; structural funds; economic crisis (search for similar items in EconPapers)
JEL-codes: E61 E65 (search for similar items in EconPapers)
Date: 2009-11-06
New Economics Papers: this item is included in nep-eec and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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