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Recommendations for changes in the methodology of public EU funds allocation in the context of economic crises, including the COVID-19 pandemic

Author

Listed:
  • Karina Bedrunka

    (Marshal Office of the Opolskie Voivodeship)

  • Ireneusz Dąbrowski

    (Warsaw School of Economics)

Abstract
The article presents the national allocations of EU funds under the Next Generation fund and two selected financial instruments: RRF and REACT EU, which were then interpreted due to the COVID-19 pandemic. Studies have shown that Spain, Italy and France have received more than 50% and, in the case of the REACT EU programme, 64% of the European public intervention value under the RRF instrument to combat the effects of COVID-19. It should be noted that in the current algorithm for the distribution of EU funds, the values of the identified amounts of support in selected financial instruments depend on population, GDP and unemployment. In the second part of the research, which focused on satisfaction indicators, it was shown that citizens of European Union countries value having a job more than high earnings, and this means that they value life stability more than the amount of remuneration. It has also been shown that for EU citizens, social ties are rated higher than spending free time. Taking into account the results of the research, the authors believe that when developing future methodologies for the allocation of European funds, the amount of support from European public funds should be additionally relativized to the indicator of life and time satisfaction, as well as the types and intensity of global asymmetric jumps. The pandemic or the unjustified aggression of the Russian Federation against Ukraine and the related energy crises clearly demonstrate that public funds should not be allocated from the point of view of only indicators determining the socio-economic situation of the country. Based on the research, the authors believe that quality of life indicators (finance, employment, social contacts and leisure activities) should be included as a new insight in the criteria for the distribution of EU funds.

Suggested Citation

  • Karina Bedrunka & Ireneusz Dąbrowski, 2022. "Recommendations for changes in the methodology of public EU funds allocation in the context of economic crises, including the COVID-19 pandemic," Bank i Kredyt, Narodowy Bank Polski, vol. 53(6), pages 605-624.
    • Handle: RePEc:nbp:nbpbik:v:53:y:2022:i:6:p:605-624
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    References listed on IDEAS

    as
    1. Karina Bedrunka & Łukasz Mach & Anna Kuczuk & Anna Bohdan, 2021. "Identification and Analysis of Structural Fund Support Mitigating the Effects of the COVID-19 Pandemic in the EU—A Case Study of Health Unit Funding," Energies, MDPI, vol. 14(16), pages 1-15, August.
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    5. Łukasz Mach & Karina Bedrunka & Ireneusz Dąbrowski & Paweł Frącz, 2021. "The Relationship between ROP Funds and Sustainable Development—A Case Study for Poland," Energies, MDPI, vol. 14(9), pages 1-19, May.
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    More about this item

    Keywords

    EU funds; economic crises; pandemic; methodology; satisfaction indicators;
    All these keywords.

    JEL classification:

    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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