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The Effects of the Current Global Economic and Financial Crisis on the EU Budget

Transylvanian Review of Administrative Sciences

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Title The Effects of the Current Global Economic and Financial Crisis on the EU Budget
 
Creator DORNEAN, Adina; Lecturer, Department of Finance, Money and Public
Administration, Faculty of Economics and Business
Administration, Alexandru I. Cuza University, Iaşi, Romania
SANDU, Andreea; Economist, Carpatica Commercial Bank, Iaşi, Romania
 
Subject global crisis; EU budget; Community expenditure; Treaty on Stability; regression model.
 
Description The aim of this paper is to analyze the main effects of the current global financial and economic crisis on the European Union budget and the measures that were taken in order to support the EU member states with the purpose of limiting and counteracting its effects. The focus will be on the budgetary expenditure and on the new Treaty on Stability, Coordination and Governance. For this purpose, we developed a regression model using the Least Square method with three significant variables: a dependent variable – EU budgetary expenditure and two independent variables – budgetary deficit and unemployment rate of member states. According to our analysis, the crisis determined the increase of the EU budgetary expenditure, which was due especially to the increase of the budgetary deficit and rising unemployment in the EU member states. Our findings suggested that the budgetary deficit and the unemployment rate had a highly significant influence on community expenditure growth during the crisis, while the GDP growth and the public debt did not have any significance for the community expenditure growth.
 
Publisher Babes Bolyai University
 
Contributor This work was supported by the project ‘Post-Doctoral Studies in Economics: training program for elite researchers – SPODE’ co-funded from the European Social Fund through the Development of Human Resources Operational Programme 2007- 2013, contract no. P
 
Date 2013-10-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://rtsa.ro/tras/index.php/tras/article/view/142
 
Source Transylvanian Review of Administrative Sciences; 2013: Issue No. 40 E/October; 35-48
18422845
 
Language eng
 
Relation http://rtsa.ro/tras/index.php/tras/article/view/142/138
 
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