EU BUDGET POLICY: RESPONSES TO CRISES AND CHALLENGES

Abstract

This article provides an in-depth analysis of the European Union’s budget policy in the context of contemporary economic, social, and geopolitical challenges. It examines the mechanisms underlying the management of EU budgetary resources, focusing on multiannual financial frameworks that guide long-term fiscal planning, revenue forecasting, and the implementation of crisis response measures such as the NextGenerationEU initiative. A key component of the study is an analytical table that categorizes the main aspects of budget management: ensuring transparency and effective expenditure control, redistributing funds among member states based on strategic priorities like agricultural policy, cohesion, and innovation-driven investments, and securing targeted support through specialized budgetary instruments. The article also explores how the EU has adapted its financial management practices in response to unprecedented global disruptions, energy crises, and escalating geopolitical tensions. These challenges have necessitated a rethinking of traditional budgetary procedures, compelling policymakers to balance strict fiscal discipline with the need for flexible, adaptive mechanisms capable of rapidly mobilizing additional resources. Furthermore, the analysis underscores the importance of harmonizing fiscal rules across member states, enhancing accountability and transparency in budgetary processes, and integrating innovative economic instruments—such as financial transaction taxes and environmental levies—to strengthen economic resilience. The findings indicate that, despite representing only a modest share of national incomes, the EU budget plays a crucial role in redistributing resources and supporting critical policy areas to maintain competitiveness and social cohesion. Ultimately, this comprehensive study contributes both to the academic discourse on fiscal regulation and to practical policy recommendations, urging EU institutions and member states to continue reforming their budgetary approaches to effectively address evolving global challenges.