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The development of the economies of the Central and Eastern Europe (CEE) with the support of the European Structural Funds aims to help the countries to carry out the structural transformation and to increase the efficiency of their economies as a basis for long-term economic growth. Estimates of the fiscal impact of the European Structural Funds on aggregate demand for each country through the approach and assumptions of Rosenberg and Sierhe (2007) on the crowding out effect of EU funds on aggregate activity demonstrate their role as a fiscal stimulus for aggregate economic activity. Estimates justify that the impact of European funds on economic growth may reach between 1.5% and 3% of GDP above the baseline scenario, depending on the degree of substitution of European funded and nationally funded projects. EU funds can increase growth, but only if supported by long-term national policies and priorities to ensure economic and social cohesion and achievement of the average European standards.

Empirical analysis and estimates of the impact of the EU structural funds absorption in countries of Central and Eastern Europe