Transformation of EU Financial Regulation

Abstract

The subject of the study is supranational financial regulation aimed at overcoming the lack of investments, finding effective areas of their application, involving more actors in market processes and eliminating territorial imbalances. The purpose of the article is to form a vision about the growth of financial resources of the European Union (EU), which has become the response of official Brussels to the challenges of recent years, such as the weakening of confidence in EU institutions and the crisis of the COVID‑19 pandemic. The task is solved using expert assessments and descriptions of statistical data. The traditional critical assessment of the European Union budget as a stagnant tool in the system of supranational regulation of socio-economic development is confirmed. The understanding of the flexibility of the EU budget policy is deepened, the benefits for two groups of countries are illustrated: net recipients and net donors. The expansion of the EU’s budget and investment regulation in the last decade has been noted due to its going beyond own resources and strengthening the role of extra-budgetary stabilization and investment instruments. The investment rating of the member states has been compiled based on the results of the work of the Strategic Investment Fund. An increase in the EU’s financial capabilities up to 2.5 times, taking into account euro loans, has been tracked, increasing the interest of aid-seeking countries in EU membership. The total benefits of the member states from the distribution of EU grants in 2021–2007 are calculated and a significant benefit for the five large EU countries is shown. The conclusion is made about the formation of the “second generation” of EU financial resources and the transition to a higher level of supranational regulation of the processes of intensification of socio-economic development of the EU and intraregional capital movements.