The Role of European Union Funds in Economic Development
The Role of European Union Funds in Economic Development

Summary/Abstract: The European Union project initially started as a peaceful solution for warreconstruction in Europe. European countries decided to cooperate rather thancompete in an aggressive way. At the beginning, this project supposed (involved)market liberalization, trade barriers removals, market access improvement (initiallyfor coal, steel, energy and, later, for all goods, services, workforce and capital).Unfortunately, in the last decades, all these Single Market facilities have been backedby redistributive schemes, protectionist mechanisms, social engineering, subsidies andfacilities packed in so-called ”EU policies”. New ”European” institutions have beencreated, more and more funds have been involved to financially support this verycomplex redistributive intervention. The political dimension of the European Unionproject enhanced the economic dimension and constantly suffocated private marketsand the economy. The “incomes” of the European Union that fuel its financial supportare coming from taxes and/or inflation (better administered after the introduction ofa Single Currency – the Euro). This paper will discuss the relevance of European Fundsfor economic development, especially for new members in this project.

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