Public Services and their Financial Allocation in the European Context

Abstract

Public services are crucial for working stable economies in the European Union and for the development of public policies, but also the ensuring of infrastructure and satisfaction of public needs. The article aims to evaluate selected public services by the volume of allocated public expenditures, focusing on similarities in the EU countries. The quantitative analysis concentrates on financial allocations by COFOG second level in selected areas of public services. The research is carried out for the period 2008-2017 by use of multidimensional scaling. The results have shown that the EU countries can be divided into seven clusters by the similarity of public expenditures on services, although partial differences are present even in these clusters. The results have proved a high similarity of services by the volume of allocated public expenditures (public health services, recreational and sporting services) and services related to housing development. On the other hand, differences in financial allocations are presented by public services which satisfy needs of society (police services) and areas of technical infrastructure (transport, waste management), compared to the other public services analysed. These findings reflect the role and size of the public sector with respect to priorities of the EU countries.