Functional Effectiveness of New Budget Instruments in the Euro Area and Possible Deviations in EU's Fiscal Policies

Abstract

The Euro Area within the European Union tend to put a significant budget-based process of implementation with its significant alteration structural as well as the economic and financial effects in the concerned harmonization process. In this study, we aimed to reveal and analyse these possible effects in two important stages. The first of these is to introduce new budget functions in practice and to understand and analyse the impact level of these structural functions as categorical application flow. This is because the borrowing and financial supporting need of some countries in the Eurozone have different effects on the basis of the EU budget and have raised important debates. The second one is to understand the possible effects of the possible financial changes expected by the EU in the Euro Area. Besides, the some financial and economic problems related to the harmonization process have tried to force some new member countries to change radically of their public budgets for a long time, which means to aim a financial stabilization function. This phenomenon emphasizes, including reform support schemes, that the functional position of the intended investment programs be explained by budget-based policies. This approach in the study aims to set forth the main aim of this study concerning some issues of monetary union in the national reform priorities practicing.

Keywords: Budget-Based Policies, Budget Instruments, Euro Area, EU Budget, GNP.

JEL Codes: F16, F45, P41, P48.

DOI: 10.7176/JESD/10-16-06

Publication date: August 31^st 2019