The Impact of COVID-19 on the Tax Policy in the European Union

Abstract

The purpose of this article is to perform an analysis of budget revenues and expenditures in the context of the COVID-19 pandemic. The analysis shows that this pandemic will challenge the European economies, as they may face major imbalances in the coming years. At the same time, the estimated budget deficit for the end of 2020 and for 2021 was analysed, the conclusion being that most EU countries will have to find sources to finance the high expenditures made to support the business and health sectors.

Keywords

• budget deficit
• tax policy
• gross domestic product
• pandemic