The Role of European Union Funds in Economic Development


  • Cristian PĂUN Bucharest University of Economic Studies


The European Union project initially started as a peaceful solution for war reconstruction in Europe. European countries decided to cooperate rather than compete in an aggressive way. At the beginning, this project supposed (involved) market liberalization, trade barriers removals, market access improvement (initially for coal, steel, energy and, later, for all goods, services, workforce and capital). Unfortunately, in the last decades, all these Single Market facilities have been backed by redistributive schemes, protectionist mechanisms, social engineering, subsidies and facilities packed in so-called ”EU policies”. New ”European” institutions have been created, more and more funds have been involved to financially support this very complex redistributive intervention. The political dimension of the European Union project enhanced the economic dimension and constantly suffocated private markets and the economy. The “incomes” of the European Union that fuel its financial support are coming from taxes and/or inflation (better administered after the introduction of a Single Currency – the Euro). This paper will discuss the relevance of European Funds for economic development, especially for new members in this project.

Author Biography

Cristian PĂUN, Bucharest University of Economic Studies

Faculty of International Relations, University of Economic Studies, 41 Dacia Bld, sector 1, 010404, Bucharest, Romania


Barro, R.J. (1998). Determinants of Economic Growth: A Cross-Country Empirical Study (edition 1). Volume 1. Massachusetts: MIT Press Books.

Cini, M., and Solorzano-Borragan, N.P. (2010). European Union Politics (3rd Edition). Oxford, United Kingdom: Oxford University Press.

European Commission (2014). Section Public Contracts and Funding for JASMIN, JASPERS and JEREMIE funding facilities. Retrieved from

European Stability Mechanism (2014). About the ESM. Retrieved from

Jora, O-D., and Butiseaca, A. (2010). The political philosophy and the political economy of public regulation. An apropos on the ultimate cause of the current crisis. Romanian Economic Business Review, 5(4-1), 23-31.

Joumard, I. (2002). Tax System in the European Countries. OECD Economic Studies, 34(1), 91-151.

Marinescu, C., and Jora, O-D. (2013). Assessment on the “institutional economics” of corruption. Business and development in Romania, between formal and informal practices. Amfiteatru Economic Journal, 15(7), 603-616.

Mises, L.v. (1998). Interventionism: An Economic Analysis. New York: The Foundation for Economic Education, Inc. Irvington-on-Hudson.

Păun, C. (2014). The Socio-economic impact of European Funds on Eastern European Countries, International Review of Social Research, 4(1), 49-56.

Perotti, R.R. (1996). Growth, Income Distribution, and Democracy. Journal of Economic Growth, 1(2), 149-187.

Rothbard, M. (2009). Man, Economy, and State. A Treatise on Economic Principles (Scholar’s Edition, second edition). Minneola, FL: Ludwig von Mises Institute.

Solow, R.M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70(1), 65–94.

Stamate, A. (2011). Economic Aspects of the European Competition Policy Rhetoric. Romanian Economic Business Review, 6(3), 127-137.

Tatulescu, A., and Patruti, A. (2014). Structural Funds and Economic Crises: Romania's Absorption Paradox. Procedia Economics and Finance, 16(1), 64-72.

Tatulescu, A., and Patruti, A. (2015). Structural Funds as the Solution to the Present Crisis: Romania–A Case Study. Review of Social and Economic Issues, 1(2), 50-73.

Topan, V. (2007). The Origins of EU and the Flight from Liberalism. Romanian Economic Journal, 10(25), 222-232.

Wallace, H., Pollack, M., and Young, A. (2010). Policy – Making in the European Union (6th Edition). Oxford, United Kingdom: Oxford University Press.




How to Cite

PĂUN, C. (2015). The Role of European Union Funds in Economic Development. Management Dynamics in the Knowledge Economy, 3(3), 463. Retrieved from