Interpreting EU Funds Data for Macroeconomic Analysis in the New Member States

46 Pages Posted: 12 Apr 2007

See all articles by Robert Sierhej

Robert Sierhej

International Monetary Fund (IMF)

Christoph B. Rosenberg

International Monetary Fund (IMF) - European Department

Date Written: April 2007

Abstract

Drawing on a dataset suitable for macroeconomic analysis, the paper provides an overview of the magnitudes, purpose and institutional implications of EU-related transfers to and from the new member states. A rough analysis of accounting identities and first-round effects shows that EU funds may have led to a fiscal drag of up to 1 percent of GDP and an additional aggregate demand stimulus of up to 1 percent of GDP during the first years of membership. These effects are likely to increase as additional funding become available under the new financial perspective, pointing to the need to consider policy tradeoffs.

Keywords: European Union, Economic assistance, Fiscal policy, Demand

Suggested Citation

Sierhej, Robert and Rosenberg, Christoph, Interpreting EU Funds Data for Macroeconomic Analysis in the New Member States (April 2007). Available at SSRN: https://ssrn.com/abstract=979031 or http://dx.doi.org/10.2139/ssrn.979031

Robert Sierhej (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Christoph Rosenberg

International Monetary Fund (IMF) - European Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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