Renewable Energy Financial Management in the EU's Enlargement Strategy and Environmental Crises

Abstract

The European Union's enlargement process has entered a new phase. The completion of the accession negotiations with Croatia opened the way to membership in mid-2013. In addition, for Turkey, accession process remains the most effective framework for promoting EU-related reforms, developing dialogue on foreign policy issues, strengthening economic competitiveness and diversifying supply of energy sources. Similarly, improved energy cooperation with the enlargement countries directly benefits European citizens and businesses.Energy interconnection is a key element in the EU's cooperation with all neighboring countries aimed at promoting sustainable economic growth, trade and cultural exchange, employment, as well as at improving living conditions.All enlargement countries have now embarked upon a path of recovery, though at varying paces. For instance, Turkey has emerged from the crisis with a bigger economy and its growth continues to be impressive, but there are increasing signs of overheating. The Western Balkan economies are also beginning to recover, though it will take some time for them to reach pre-crisis levels.Meanwhile, climate developments will affect financial positions through their direct impact on tax bases and spending programs, and more importantly, through the policies needed to mitigate climate change and adapt behaviors and production to the new environment. The present study aims to investigate the relationship between economic growth, energy intensity, and financial management and CO2 emissions in case of the EU.