№ 7/2020

Ekon Ukr. 2020 (7): 108–120https://doi.org/10.15407/economyukr.2020.07.108

УДК 339.9

JEL:

PANFILOVA Tamara¹

¹Institute for Economics and Forecasting of the NAS of Ukraine, Research ID : http://www.researcherid.com/rid/
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-1410-6258

CONVERGENCE AND DIVERGENCE OF THE SPHERE OF PUBLIC FINANCES OF THE EU MEMBER STATES AND UKRAINE

Ukraine's strategic course towards European integration requires a careful analysis and identification of priority areas for bridging the gap in the levels of socio-economic development with EU member states. The conceptual foundations of the theory of convergence allow us to explore key areas of human activity. Among the key sectors of socio-economic development of any state or integration group is, of course, the field of public finance. After all, the stability of the country's financial system and the well-being of the population depend on the ability of governing bodies to create an effective system of formation and distribution of state budget funds.
The basic principles of convergence of euro area member states and the EU as a whole are determined by the Maastricht criteria on the limits of the main macrofinancial indicators, and the mechanism of convergence is regulated by relevant regulations of a supranational nature. The basis of the mechanism of financial support of EU member states in the context of convergence is the general budget of the EU and special structural funds, which are its components.
The dynamics of the main macro-financial indicators of the EU member states during 2000–2019 allowed to determine the strengthening of divergence in the periods of unfolding global and regional financial crises. First of all, it concerns the state budget deficit and the ratio of public debt to GDP.
In the near future, among the risks of deepening crises and divergence in public finances in both the EU and Ukraine, an imbalance is expected, given the unfolding of the latest global crisis, public budgets due to reduced tax revenues and rising social security costs, business support real sector of the economy, etc. The risk of defaults on liabilities of the state and companies of the corporate sector of the economy is actualized.
The EU's current crisis management mechanism, the European Stability Mechanism, will mitigate the negative effects of the recent crisis. Ukraine has not been able to reform its public finances in recent years, so it is undergoing a significant "blow" to the public finance sector.

Keywords:convergence; divergence; Maastricht criteria; state debt; state budget deficit; global financial and economic crisis

Article original in Ukrainian (pp. 108 - 120)

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The article was received by the Editorial staff on June 25 , 2020

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