Public finance crisis and sustainable development financing – evidence from EU economies

Abstract

The paper aims at identifying the impact of public finance crisis on the changes in both level and structure of public spendings on sustainable development in the EU countries. The research objective is accompanied by the following research hypothesis: General Government expenditures financing sustainable social and economic development in the EU countries have been reduced due to increasing public finance imbalances. The paper is composed of two parts. The first one discusses the problems of increasing imbalances in the public finances. The second one outlines changes in the structure of public expenditure connected with sustainable development financing. The study covers all of the EU member states. The analyses are based on Eurostat data.