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

Author/Editor:

Robert Sierhej ; Christoph B. Rosenberg

Publication Date:

April 1, 2007

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 07/77

Subject:

English

Publication Date:

April 1, 2007

ISBN/ISSN:

9781451866414/1018-5941

Stock No:

WPIEA2007077

Format:

Paper

Pages:

44

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