POLICY OF PUBLIC EXPENDITURES IN THE EU IN POST-CRISIS PERIOD

Abstract

Changes in the policy of public expenditures in the EU, carried out to overcome imbalance in fiscal area and maintain economic growth and financial stability in the post-crisis period, are analyzed. Various theoretical approaches to solve such prob-lems are considered, ranging from an increase in government spending based on the use of budget deficit mechanisms to applying the budgetary savings measures. It is noted that fiscal adjustments are aimed at solving the fiscal consolidation tasks, and expenditure policy plays a leading role in its implementation. Application of austerity measures has significant negative impacts on development of the economy and monetary system, which necessitates changes in their neutralization. It is concluded that the policy of public expenditures should be directed not only to fiscal adjust-ment, but also to maintain economic growth and financial stability. Such tasks are solved by introducing the changes to the volumes of the expenditure part of the pub-lic administration sector, as well as to their structure. Categories of expenditures used in the EU are determined in order to have a positive impact on indicators of economic dynamics. The implementation of such approaches in the EU in the post-crisis period, taking into account the influence of institutional factors, was analyzed. Their positive results, as well as problems supposed to be solved, are highlighted. It is concluded that the experience of making changes to the policy of state expenditures in the EU is gaining importance when conducting the fiscal policy in Ukraine in view of the need to continue fiscal consolidation, as well as to maintain economic growth, stabilize financial situation and increase real incomes of population.