Fiscal sustainability of the macroeconomic system of European Union members

Abstract

Modern countries are characterized by budget deficits that can create significant problems if they are present in the long run. The aim of these countries is to reduce these deficits to the lowest possible level or, ultimately, their complete elimination. Increasing public expenditures, on the one hand, accompanied by a reduction in fiscal revenues on the other, has, as a result, triggered some of the forms of nonfiscal resources. Unemployment is a very challenging problem for modern countries, so it takes a significant place in terms of budget spending. For this reason it is imperative to emphasize the policy of stimulating investment, which is the case in the countries of the European Union.

Keywords

• public expenditures
• public revenues
• unemployment
• investments
• budget deficit