MACROECONOMIC ASPECTS OF REGIONAL POLITICS OF THE EUROPEAN UNION
Journal Title: Acta Economica - Year 2009, Vol 7, Issue 10
Abstract
Regional politics is one of the key common politics of the European Union. Its objectives are the growth of economic-social cohesion and equalizing the levels of development. Such conception of development requires high budget transfers, which necessairly lead to social redistributions and disruption of the ground-principles and values the European idea is established at. Disruption of the principles of free competition is only one of unwanted consequences and controversies of the regional politics. European model of regional development prefers long term objectives and strengthening of the aggregate offer points to the antikeynesian sharacter of the regional politics of the European Union. It ifluences on the macroeconomics of the regions which use the largest subventions from cohesive and structural funds. And besides the positive macroeconomic tendencies, which are shown in construction of the infrastructure, opening of small and middle enterprises (that is in strengthening the aggregate supply), reduction of the unemployment etc., this model of the development of less developed territories is a subject of numerous criticisms. They are not directed only to the level and efficiency of expenditure the budget transfers, but to that, that these measures imperil the functioning of the free market, strengthen the authority of administration, often avoiding the national governments etc. Although it is centralized at the Union level, the regional political factors influence strongly on the regional politics sa well. As a consequence, numerous regional agencies are opened in the centre of the European Union. But, the results are not yet proportional to the efforts of central, national and regional politics. However, it must be stressed, that the European Union will keep on reducing the developmental disproportions (of the old, but as well as of the new accepted members) and strengthen the economic-social cohesion. That's why the measures of the regional politics are going to have the important role in the future economic development of the Union, but in the processes of the extension as well. Of course, there are numerous other, non-economic and contextual objectives and aspects of the regional politics of the European Union, which are the subject of the interest of other scientific disciplines.
Authors and Affiliations
Горан Поповић, PhD
Keywords
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